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Greeson Corp. signed a three-month, zero-interest-bearing note on...

Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2017 for the purchase of $500,000 of inventory. The face value of the note was $507,800. Assuming Greeson used a “Discount on Note Payable” account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2017 will include a 

a.debit to Discount on Note Payable for $2,600

b.debit to Interest Expense for $5,200.

c.credit to Discount on Note Payable for $2,600

d.credit to Interest Expense for $5,200

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