Question

Deere company holds a​ $10,000 note receivable dated july​ 1, 2015, with​ 10% interest. what adjusting entry is needed on december​ 31, 2015?

a. no entry is needed.
b. debit interest receivable for​ $500 and credit interest revenue for​ $500
c. debit interest receivable for​ $1,000 and credit interest revenue for​ $1,000
d. debit interest receivable for​ $100 and credit interest revenue for​ $100

Answer 1

b. debit interest receivable for​ $500 and credit interest revenue for​ $500