Which journal entry correctly reclassifies \$7,000 of long-term debt to current liabilities?

• A. Debit Long-term Debt \$7,000; Credit Cash \$7,000.
• B. Debit Cash \$7,000; Credit Long-term Debt \$7,000.
• C. Debit Current Liabilities \$7,000; Credit Long-term Debt \$7,000.
• D. Debit Long-term Debt \$7,000; Credit Current Liabilities \$7,000.

Answer: (D)