On December 1, 2019, Xia Company accepts a $72,000, 90 day, 8% note from a customer. If Xia Company's accounting period ends on December 31, and the note is collected on March 1, 2020 which one of the following statements will be true for Xia Company?
A) On March 1, 2020, they will credit Interest Receivable for $480
B) On December 31, 2019, they will debit Interest Income for $480
C) On December 31, 2019, they will credit Interest Receivable for $480
D) On March 1, 2020, they will credit Interest Income for $480
Correct Answer:
Verified
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