The Collins Company sold $200,000 of 10-year bonds for $190,000. The stated rate on the bonds was 8% and interest is paid annually on December 31. What entry would be made on December 31 when the interest is paid? (Numbers are omitted.)
A) Interest ExpenseCash
B) Interest ExpenseDiscount on Bonds PayableCash
C) Interest ExpenseDiscount on Bonds PayableCash
D) Interest ExpenseBonds PayableCash
B
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