When bonds are purchased between interest dates, the accrued interest should be

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When bonds are purchased between interest dates, the buyer owes the seller for the interest accrued from the last interest payment date to the purchase date. This amount is typically debited to Interest Receivable if the buyer expects to receive the full interest amount on the next interest payment date, or to Interest Revenue if the buyer is accounting for the accrued interest as income. Thus, either approach (A or B) can be correct depending on the accounting policy of the buyer.

When Bonds Are Purchased Between Interest Dates, the Accrued Interest