Which journal entry correctly reclassifies \$5,000 of long-term debt to current liabilities?

• A. Debit Current Liabilities \$5,000; Credit Long-term Debt \$5,000.
• B. Debit Long-term Debt \$5,000; Credit Cash \$5,000.
• C. Debit Cash \$5,000; Credit Long-term Debt \$5,000.
• D. Debit Long-term Debt \$5,000; Credit Current Liabilities \$5,000.

Answer: (D)