Question

On November 19, Nicholson Company receives a dollar 18,600, 60-day, 10 percentage note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.) Debit Interest Receivable dollar 310; credit Interest Revenue dollar 310. Debit Interest Receivable dollar 217; credit Interest Revenue dollar 217. Debit Interest Revenue dollar 217; credit Interest Receivable dollar 217. Debit Interest Receivable dollar 93; credit Interest Revenue dollar 93. Debit Interest Revenue dollar 310; credit Interest Receivable dollar 310.

Answer 1

OUR ANSWER IS DEBIT INTEREST RECEIVABLE: $217

CREDIT INTEREST REVENUE:$217

Step-by-step explanation:

NOTE = $18,600

INTEREST RATE =10%

NOTE RECEIVED ON NOV 19

ADJUSTMENT ENTRY ON DEC 31ST

INTEREST REVENUE =$18,600 ×10/100×32/360

=$217

DEBIT :INTEREST RECEIVABLE $217

CREDIT: INTEREST REVENUE $217