If an Interest Receivable account is debited in an adjusting entry, then the account credited will be Interest Revenue.

Question

Quizplus · Accepted Answer

When an Interest Receivable account is debited in an adjusting entry, it indicates that interest income has been earned but not yet received, thus increasing the asset account (Interest Receivable). To balance this entry, Interest Revenue is credited, recognizing the earned income in the accounting period.

If an Interest Receivable Account Is Debited in an Adjusting