Joe's Home Improvement Centre charges 19% interest on all unpaid Joe's credit card transactions beyond 30 days. On September 30, Rico failed to pay off his Joe's credit card balance of $6,500. What adjusting entry would be recorded by Joe on September 30 for Rico's unpaid credit card?
A) Debit to Credit Card Receivable and credit to Interest Revenue for $101.51.
B) Debit to Accounts Receivable and credit to Sales Revenue for $6,500.
C) Debit to Accounts Receivable and credit to Interest Revenue for $101.51.
D) Debit to Credit Card Receivable and a credit to Sales Revenue for $6,500.
Correct Answer:
Verified
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