Multiple Choice
On December 31,2015,Infinity Inc.records an adjusting entry to accrue interest on a note.On January 31,2016,Infinity receives a check for $4,680,which represents two months of accumulated interest on the note.Upon receipt of this interest payment,Infinity should debit:
A) Interest Receivable for $2,340, debit Cash $2,340, and credit Interest Revenue for $4,680.
B) Cash for $4,680, credit Interest Receivable for $2,340, and credit Interest Revenue for $2,340.
C) Cash for $4,680 and credit Interest Receivable for $4,680.
D) Cash for $4,680 and credit Interest Revenue for $4,680.
Correct Answer:
Verified
Correct Answer:
Verified
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