Multiple Choice
Best,Inc.loaned $100,000 for three months on November 1 to one of its customers at the rate of 6%.The principal amount of the loan plus interest is due on the following February 1.Which of the following is the adjusting journal entry that will be recorded on December 31?
A) Debit Cash and credit Interest Revenue for $4,000.
B) Debit Interest Receivable and credit Interest Revenue for $4,000.
C) Debit Interest Receivable and credit Interest Revenue for $1,000.
D) Debit Interest Receivable and credit Interest Revenue for $500.
Correct Answer:
Verified
Correct Answer:
Verified
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