at the end of the accounting period, a company has accrued interest revenue that will not be received until…

at the end of the accounting period, a company has accrued interest revenue that will not be received until the next accounting period. the adjusting entry would include a: \n\na. debit to interest revenue. \nb. debit to interest expense. \nc. debit to interest receivable. \nd. debit to interest payable.

at the end of the accounting period, a company has accrued interest revenue that will not be received until the next accounting period. the adjusting entry would include a: \n\na. debit to interest revenue. \nb. debit to interest expense. \nc. debit to interest receivable. \nd. debit to interest payable.

Answer

Brief Explanations:

When interest revenue is accrued but not yet received, it means the company has earned the interest (so Interest Revenue is credited as revenue increases with a credit) and has a right to receive the interest in the future (so Interest Receivable, an asset account, is debited as assets increase with a debit).

  • Option A: Debiting Interest Revenue would decrease revenue, which is incorrect as revenue is earned (should be credited).
  • Option B: Interest Expense is not relevant here as it's about interest revenue, not expense.
  • Option D: Interest Payable is for when a company owes interest (a liability), not when it's due to receive interest.

Answer:

C. debit to Interest Receivable.