Principle Place Determines That It Has NOT Yet Recorded the 2020

question 42

Multiple Choice

Principle Place determines that it has NOT yet recorded the 2020 accrual for interest revenue to be received in 2021. Assuming the amount to be recorded for 2020 is $ 6,000, the required adjustment at December 31, 2020, is

• A) debit Interest Receivable and credit Interest Revenue $ 6,000.
• B) debit Interest Revenue and credit Interest Receivable $ 6,000.
• C) debit Interest Payable and credit Interest Revenue $ 6,000.
• D) No adjusting entry is required.