Assume That the $2,000,90-Day,8 Percent Note Was Received on August

Assume that the $2,000,90-day,8 percent note was received on August 31 and that the fiscal year ended on September 30.The adjusting entry that would be made to record the interest receivable is (amounts rounded to nearest dollar) :

A) Interest receivable 13
Interest Income 13
B) Notes receivable 13
Interest Income 13
C) Accounts receivable 40
Cash 40
D) Interest income 40
Accounts receivable 40

Correct Answer:

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