At the end of the accounting period,a company has accrued interest revenue that they will not receive until the next accounting period.The adjusting entry would include a:

Question

Quizplus · Accepted Answer

The adjusting entry would include a debit to Interest Receivable, as this account represents the amount of interest revenue earned but not yet received. Accrual accounting requires recording revenue when it is earned, not when it is received. Therefore, the interest revenue should be credited, and the corresponding debit should be made to the Interest Receivable account, which represents the interest revenue that the company will receive in the future.

At the End of the Accounting Period,a Company Has Accrued