Glaus Corp Signed A Three Month Zero Interest Bearing Not On November 1 2010 For

Glaus Corp, signed a three month, zero-interest-bearing not on November 1, 2010 for the purchase of $150,000 of inventory. The face value of he note was $152,205. Assuming Glaus used a “Discount on Note Payable” account to initally record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2010 will include a: a)debit to discount on Note Payable for $735 b)debit to interedt Expense for $1,470 c)credit to Discount on Not Payable for $735 d)Credit to Interest Expense for $1,470

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