The Adjusting Entry to Record Accrued Interest on a Note

question 26

Multiple Choice

The adjusting entry 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 Interest Receivable.
• D)debit to Interest Receivable and a credit to Cash.