The entry to record interest expense on a bank loan payable is a

A) debit to interest expense and credit to note payable.
B) debit to note payable and credit to interest income.
C) debit to interest payable and credit to interest income.
D) debit to interest expense and credit to interest payable.

Bank Loan Payable

A liability representing the amount of borrowed funds from a bank that the borrower is legally required to repay in the future.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money or money earned from deposited funds.

Interest Payable

Refers to the amount of interest that has been incurred on borrowed funds but has not yet been paid out to the lender as of the reporting date.