Author Question: B. Row, Inc. borrows 2,000 from a bank on January 1, 2011 and agrees to pay it back two years later ... (Read 70 times)

fagboi · **on:** Jul 5, 2018

B. Row, Inc. borrows 2,000 from a bank on January 1, 2011 and agrees to pay it back two years later with 7 interest. On January 1, 2011, the journal entry to record this transaction would include ________.

A) a debit to Notes payable of 2,000
B) a debit to Cash of 2,000
C) a credit to Notes payable of 2,140
D) more than one of these

Question 2

When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the discount period.
a. True
b. False

Indicate whether the statement is true or false