Homework Answers
Answer
- Adjusting entry is required to adjust and record the interest
revenue earned but not received for 3.5 years.
3.5 months = Half month of Sept + Oct + Nov + Dec. - 3.5 month’s interest
= $ 6000 x 14% x 3.5/12
= $ 245 - Correct Answer =Option #2
Debit Interest receivables $ 245
Credit Interest Revenue $ 245
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