On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000 . If you assume 360 days in year, the November 30 adjusting entry will be:
a. Debit Interest Expense $550 and credit Cash $550.
b. Debit Discount on Notes Payable $1,100 and credit Interest Payable $1,100.
c. Debit Interest Expense $550 and credit Interest Payable $550.
d. Debit Interest Expense $550 and credit Notes Payable $550.
c
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