The Interest Receivable Account for February Showed Transactions Totaling $8,500

question 13

Multiple Choice

The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200.

• A) The transactions probably resulted from accruing interest income earned.
• B) The transactions were probably entered on the credit side of the account.
• C) The adjustment was probably for cash receipts of interest receivable accrued in prior months.
• D) The balance in the interest receivable account decreased $2,700.

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