An Adjusting Entry Made to Record Accrued Interest on a Note

question 254

Multiple Choice

An adjusting entry made to record accrued interest on a note receivable due next year consists of a:

• A)debit to Interest Expense and a credit to Interest Payable.
• B)debit to Interest Receivable and a credit to Interest Revenue.
• C)debit to Interest Expense and a credit to Notes Payable.
• D)debit to Interest Expense and a credit to Cash.