The Interest Receivable Account for February Showed Transactions Totaling $17,000

Multiple Choice

The Interest Receivable account for February showed transactions totaling $17,000 and an adjustment of $22,400.

A) The transactions probably resulted from accruing interest income earned.
B) The transactions were probably entered on the credit side of the account.
C) The adjustment was probably for cash receipts of interest receivable accrued in prior months.
D) The balance in the interest receivable account decreased $5,400.