If interest revenue for the period is $14,000 and the beginning and ending interest receivable balances are $1,320 and $5,900,respectively,cash received for interest is:
A) $14,000.
B) $9,420.
C) $18,500.
D) $8,100.

Question

Quizplus · Accepted Answer

The cash received for interest can be calculated by adding the interest revenue to the increase in interest receivable balance:
Cash received for interest = interest revenue + increase in interest receivable
Increase in interest receivable = ending balance - beginning balance
Increase in interest receivable = $5,900 - $1,320
Increase in interest receivable = $4,580
Cash received for interest = $14,000 + $4,580
Cash received for interest = $18,580
Therefore, the correct answer is B) $9,420.

If Interest Revenue for the Period Is $14,000 and the Beginning