A Note Receivable Is Issued in December, with Interest Due

question 110

Multiple Choice

A note receivable is issued in December, with interest due at maturity.When the note is paid the following February, the payee's entry includes (assuming a calendar-year accounting period when adjusting entries are recorded) a

• A)credit to Interest Receivable.
• B)credit to Cash.
• C)debit to Notes Receivable.
• D)debit to Interest Income.

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