The Interest Expense in the Worksheet's Unadjusted Trial Balance Column

question 23

Multiple Choice

The Interest expense in the worksheet's unadjusted trial balance column is $6000.Interest expense in the income statement column is $10,000.Which of the following entries would have caused this difference?

• A)a $10,000 credit to Interest expense in the worksheet's adjustments column
• B)a $4000 credit to Interest expense in the worksheet's adjustments column
• C)a $10,000 credit to Interest payable in the worksheet's adjustments column
• D)a $4000 debit to Interest expense in the worksheet's adjustments column

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Estimated

An approximation or informed guess of a value, quantity, or outcome based on available data.

Budgeted Accounts Receivable

Predicts the amount of money owed to a business by its customers for sales made on credit during a specific period.

Collections

The process of gathering money that is owed by customers, often in relation to accounts receivable.