On December 11, 2019, Red gave a $60,000, 60-day, 9% note to Cardinal in payment of an account. On December 31, 2019, cardinal should record:

Name: On December 11, 2019, Red gave a $60,000, 60-day, 9% note to Cardinal in payment of an account. On December 31, 2019, cardinal should record:
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Question

Quizplus · Accepted Answer

Dec. 31 Interest receivable 300
Interest income 300
To accrue interest income on the note from Red Company
($60,000 x 9% x 20/360 = $300)

On December 11, 2019, Red Gave a $60,000, 60-Day, 9