The entry to reverse the adjustment for accrued interest income consists of a debit to

Question

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Accrued interest income would have been initially recorded with a debit to Interest Receivable and a credit to Interest Income. To reverse the adjustment, the opposite entry should be made, which is a debit to Interest Income and a credit to Interest Receivable. This restores the original balance in Interest Receivable while removing the accrual of interest income that was recorded but not yet earned.

The Entry to Reverse the Adjustment for Accrued Interest Income