On December 31,2018,Infinity Inc

question 171

Multiple Choice

On December 31,2018,Infinity Inc.records an adjusting entry to accrue interest on a note.On January 31,2019,Infinity receives a check for $4,680,which represents two months of accumulated interest on the note.Upon receipt of this interest payment,Infinity should debit:

• A)Interest Receivable for $2,340,debit Cash $2,340,and credit Interest Revenue for $4,680.
• B)Cash for $4,680,credit Interest Receivable for $2,340,and credit Interest Revenue for $2,340.
• C)Cash for $4,680 and credit Interest Receivable for $4,680.
• D)Cash for $4,680 and credit Interest Revenue for $4,680.

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