The Adjusting Entry to Record Accrued Interest on a Note

Multiple Choice

The adjusting entry to record accrued interest on a note receivable due next year consists of a

A) debit to Interest Expense and a credit to Interest Payable.
B) debit to Interest Receivable and a credit to Interest Revenue.
C) debit to Interest Expense and a credit to Note Receivable.
D) debit to Interest Receivable and a credit to Cash.