Question

On December 31, 2015, Infinity Inc. records an adjusting entry to accrue interest on a note. On January 31, 2016, Infinity receives a check for $4,680, which represents two months of accumulated interest on the note. Upon receipt of this interest payment, Infinity should debit:

A) Interest Receivable for $2,340, debit Cash $2,340, and credit Interest Revenue for $4,680.

B) Cash for $4,680, credit Interest Receivable for $2,340, and credit Interest Revenue for $2,340.

C) Cash for $4,680 and credit Interest Receivable for $4,680.

D) Cash for $4,680 and credit Interest Revenue for $4,680.

Answer

This answer is hidden. It contains 238 characters.