Which account is debited when recording interest expense on a mortgage payment?

When recording interest expense on a mortgage payment, the Interest Expense account is debited. This is because interest expense represents the cost incurred for borrowing funds, and debiting this account reflects an increase in expense, which ultimately reduces net income on the income statement.

In the accounting equation, expenses are recognized at the time they are incurred, regardless of when the actual payment is made. By debiting Interest Expense, the company acknowledges the obligation it has to pay for the interest accrued during the period. This transaction also contributes to a better understanding of the overall financial position of the company, as it accurately captures the costs associated with financing.

Other accounts related to mortgages, such as Mortgage Payable and Notes Payable, deal primarily with the principal portion of the mortgage and the overall debt. Cash would be credited to reflect the outflow of cash used to make the payment. However, for the purpose of tracking the specific cost of borrowing—interest—the correct action is to debit Interest Expense.