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.

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Definitions:

Unsought Product

A type of product that consumers typically do not think of buying until a need arises or they are made aware of it through advertising.

Convenience Products

Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

Specialty Outlets

Specialty outlets are retail stores that focus on selling a specific category of products or services, offering a deep selection within those categories.

Convenience Stores

Convenience stores are small retail businesses that stock a range of everyday items such as groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and magazines.