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The United Shipping Co

Question 72

Multiple Choice

The United Shipping Co.borrowed $25,000 at 12% interest on March 1,2018.The note is to be repaid,with interest,in six months.If United Shipping makes monthly adjusting entries,which of the following is included as part of the March 31 adjusting entry?


A) Debit Interest Receivable $250.
B) Credit Interest Payable $2,500
C) Debit Interest Expense $250.
D) Debit Interest Payable $250.

Correct Answer:

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