If a customer owes interest on accounts receivable,the company should debit Interest Revenue and credit Accounts Receivable.

Name: If a customer owes interest on accounts receivable,the company should debit Interest Revenue and credit Accounts Receivable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest owed by a customer should be recorded as a debit to Accounts Receivable and a credit to Interest Revenue, as it increases the amount the customer owes (Accounts Receivable) and recognizes the revenue earned (Interest Revenue).

If a Customer Owes Interest on Accounts Receivable,the Company Should