Multiple Choice
A company lends a major client $90,000 for one year at a 7% annual interest rate.Interest payments are to be made twice a year.In July,the company receives an interest payment for January through June.The company would record receipt of the interest payment in which of the following ways?
A) Debit Interest Receivable for $3,150 and credit Interest Revenue for $3,150.
B) Debit Cash for $3,150 and credit Notes Receivable for $3,150.
C) Debit Interest Revenue for $3,150 and credit Cash for $3,150.
D) Debit Cash for $3,150 and credit Interest Receivable for $3,150.
Correct Answer:
Verified
Correct Answer:
Verified
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