On December 8, Kerrin Company Recorded $300 Interest Deducted from a Discounted

Multiple Choice

On December 8, Kerrin Company recorded $300 interest deducted from a discounted note payable. What adjusting entry should record interest earned at the end of December?

A) Debit Interest Income; credit Discount on Notes Receivable
B) Debit Interest Expense; credit Discount on Notes Payable
C) Debit Interest Expense; credit Cash
D) Debit Interest Income; credit Discount on Notes Payable