An adjustment that must be made for the accrued interest on a note receivable would include a:
A) debit to Note Receivable.
B) credit to Interest Receivable.
C) debit to Interest Receivable.
D) credit to Note Receivable.

Question

Quizplus · Accepted Answer

Accrued interest on a note receivable is recorded by debiting Interest Receivable to recognize the interest income that has been earned but not yet received.

An Adjustment That Must Be Made for the Accrued Interest