Interest earned and receivable on a note receivable equals $75 for the month of March.What adjusting entry,if any,should be recorded as of March 31?
A)Debit Cash $75 and credit Interest Revenue $75.
B)Debit Interest Receivable $75 and credit Interest Revenue $75.
C)Debit Interest Revenue $75 and credit Interest Receivable $75.
D)No journal entry is needed at this time.

Question

Quizplus · Accepted Answer

On March 31,the company should record an adjusting entry with a debit to Interest Receivable (to increase this asset account)and a credit to Interest Revenue for $75 (to increase this revenue account).

Interest Earned and Receivable on a Note Receivable Equals $75