When a note matures,the payee should record:

Question

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When a note matures, the payee receives the full amount of the note, including the interest earned. This interest earned is considered interest revenue and should be recorded as such. Option A (interest payable) pertains to the payee owing interest to someone else, while option B (interest expense) pertains to the payer paying interest to the payee. Option D (unearned revenue) is not applicable in this scenario.

When a Note Matures,the Payee Should Record