BB Had Previously Purchased Inventory from L Wong for $15

Multiple Choice

BB had previously purchased inventory from L Wong for $15 000. On 1 October BB gave Wong a 60-day, bill of exchange to cover the amount of the account payable plus interest at 9% p.a. What is the correct accounting entry in BB's books to record the issue of the bill?

A) Debit accounts payable $15 000; debit unexpired interest $222; credit bills payable $15 222
B) Debit accounts payable $15 000; credit bills payable $15 000
C) Debit bills payable $15 222; credit accounts payable $15 222
D) Debit bills payable $15 000; debit unexpired interest $222; credit accounts payable $15 222