Interest Expense Had an Adjusted Balance of $1,208

question 93

Multiple Choice

Interest Expense had an adjusted balance of $1,208. The adjusting entry for accrued interest was for $422. The unadjusted balance for Interest Expense was a:

• A)$422 debit.
• B)$1,630 debit.
• C)$1,630 credit.
• D)$786 debit.

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Definitions:

Finished Goods Account

An account used to track the value of products that are completed and ready for sale.

Factory Overhead Ledger

An accounting ledger that details the indirect costs associated with manufacturing, which may include utilities, depreciation, and salaries of non-direct labor.

Unit Costs

The cost associated with a single unit of product or service, including all costs incurred to produce, deliver, and sell the product.

Job Order Cost Systems

An accounting method that assigns costs to specific batches or job orders, tracking the direct materials, direct labor, and manufacturing overhead per job.