The Last Bank lends money to a customer on a six month note. The bank accrues interest on the note at the end of the year. The journal entry would include:
A) a debit to Cash and a credit to Interest Revenue.
B) a debit to Cash and a credit to Interest Payable.
C) a debit to Interest Receivable and a credit to Interest revenue.
D) a debit to Interest Revenue and a credit to Interest Receivable.
Correct Answer:
Verified
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