The Following General Journal Entry Is Made on June 1

question 41

Multiple Choice

The following general journal entry is made on June 1 in the books of Jo Jo. $\begin{array}{lr}&Dr&Cr\\\text { Bills receivable }&\$8197.26\\\text { Unearned interest } & &\$ 197.26 \\\text { Accounts receivable } && \$ 8000.00\end{array}$ To record bills receivable $8 000 x 10% x 90 days/365 days.
The adjusting entry required for interest at balance day on 30 June is:

• A)Debit unearned interest $65.75; credit interest revenue $$65.75
• B)Debit interest revenue $65.75; credit unearned interest $65.75
• C)Debit unearned interest $131.51; credit interest revenue $$131.51
• D)Debit bank $65.75; credit interest revenue $65.75