The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200.
A) The transactions probably resulted from accruing interest income earned.
B) The transactions were probably entered on the credit side of the account.
C) The adjustment was probably for cash receipts of interest receivable accrued in prior months.
D) The balance in the interest receivable account decreased $2,700.

Question

Quizplus · Accepted Answer

The transactions totaling $8,500 were likely credits, as they would decrease the Interest Receivable account, while the $11,200 adjustment was likely a debit, increasing the account.

The Interest Receivable Account for February Showed Transactions Totaling $8,500