Answer: d. Discount on Bonds Payable
Explanation:
When a bond is issued for a price that is lower than its par/ face value, the discount will be treated as a debit entry to an account called the Discount on Bonds Payable account.
This happens when a bond has a coupon rate that is lower than the market yield. It will lead to the bond being demanded at a lower price and it will be know as a Discount bond.
