a-company-pays-off-a-1000-loan-how-should-this-transaction-be-recorded

Question

A company pays off a $1,000 loan. How should this transaction be recorded?

Accepted Answer

Debit Loan Payable, Credit Cash

Answer

Credit Loan Payable, Debit Cash

Answer

Credit Cash, Debit Revenue

Answer

Debit Cash, Credit Loan Payable

A company pays off a \$1,000 loan. How should this transaction be recorded?