The company accrued interest revenue of $6,000 earned on an investment in an adjusting entry dated December 31,2014.A check for this amount was received on January 9,2015.How would the company record this transaction?
A)Debit Cash for $6,000 and credit Interest Revenue for $6,000.
B)Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000.
C)Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000.
D)Debit Cash for $6,000 and credit Interest Receivable for $6,000.
E)Debit Interest Revenue for $6,000 and credit Income Summary for $6,000.

Question

Quizplus · Accepted Answer

The company would debit Cash for $6,000 to reflect the receipt of cash and credit Interest Receivable for $6,000 to clear the receivable that was recorded in the adjusting entry.

The Company Accrued Interest Revenue of $6,000 Earned on an Investment