Multiple Choice
On November 19, Nicholson Company receives a $15,000, 60-day, 8% note from a customer as payment on a past-due account. What adjusting entry should be made on the December 31 year-end?
A) Debit Interest Receivable $1,200; credit Interest Revenue $1,200.
B) Debit Interest Receivable $140; credit Interest Revenue $140.
C) Debit Interest Receivable $200; credit Interest Revenue $200.
D) Debit Interest Revenue $140; credit Interest Receivable $140.
E) Debit Interest Revenue $200; credit Interest Receivable $200.
Correct Answer:
Verified
Correct Answer:
Verified
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