White Resources determines that it has NOT yet recorded the 2017 accrual for Interest Revenue to be received in 2018. Assuming the amount to be recorded for 2017 is $2,000, the required adjustment at December 31, 2017 is
A. debit Interest Receivable and credit Interest Revenue $2,000.
B. debit Interest Revenue and credit Interest Receivable $2,000.
C. debit Interest Payable and credit Interest Revenue $2,000.
D. Silly question: no adjusting entry is required.
Answer:A
White Resources determines that it has NOT yet recorded the 2017 accrual for Interest Revenue to be received in 2018. Assuming the amount to be recorded for 2017 is $2,000, the required adjustment at December 31, 2017 is
A. debit Interest Receivable and credit Interest Revenue $2,000. B. debit Interest Revenue and credit Interest Receivable $2,000. C. debit Interest Payable and credit Interest Revenue $2,000. D. Silly question: no adjusting entry is required.