Assume That the $1,000,90-Day,8 Percent Note Was Received on August $\begin{array}{llr} \text { Interest receivable} &7\\ \text { Interest Income} &&7\\\end{array}$

question 100

Multiple Choice

Assume that the $1,000,90-day,8 percent note was received on August 31 and that the fiscal year ended on September 30.The adjusting entry that would be made to record the interest receivable is (amounts rounded to nearest dollar) :

• A)
• \(\begin{array}{llr}
• \text { Interest receivable} &7\\
• \text { Interest Income} &&7\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Notes receivable } &7\\
• \text {Interest Income } &&7\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Accounts receivable} &20\\
• \text { Cash } &&20\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Interest income } &20\\
• \text { Accounts receivable } &&20\\
• \end{array}\)

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