What accounting entry records the amortized cost of Webb Corporation's investment in bonds before sale?

The appropriate accounting entry that records the amortized cost of Webb Corporation's investment in bonds before sale involves crediting Debt Investments. This is done to reflect the reduction in the carrying value of the investment as it is being amortized over time.

When a company holds bonds, their value can change over time due to factors like market interest rates or the passing of time, leading to the need for amortization. Amortization allows the company to systematically allocate the cost of the bond over its life, reflecting the investment's declining value accurately on the balance sheet.

By crediting Debt Investments, the entry signifies that the carrying amount of the investment is decreasing as it reaches maturity or as it is sold. This entry is essential for ensuring that the financial statements present an accurate and fair view of the company’s financial position.

The other options do not accurately represent the recording of an amortized cost of an investment in bonds. Dr Cash refers to cash inflow transactions, while Cr Loss on Sale pertains to situations where there is a loss associated with selling an asset, and Dr Interest Receivable records earned interest that is yet to be received. These options don't relate specifically to the amortized cost recording process.