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Deere Company Holds a $4800 Note Receivable Dated July 1

Question 116

Multiple Choice

Deere Company holds a $4800 note receivable dated July 1, 2015, with 10% interest. What adjusting entry is needed on December 31, 2015?


A) No entry is needed.
B) Debit Interest Receivable for $48 and credit Interest Revenue for $48
C) Debit Interest Receivable for $240 and credit Interest Revenue for $240
D) Debit Interest Receivable for $480 and credit Interest Revenue for $480

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