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The Adjusting Entry to Record Accrued Interest on a Note

Question 2

Multiple Choice

The adjusting entry to record accrued interest on a note payable requires a


A) debit to Interest Income and a credit to Notes Payable.
B) debit to Interest Expense and a credit to Interest Payable.
C) debit to Interest Payable and a credit to Interest Expense.
D) debit to Interest Expense and a credit to Cash.

Correct Answer:

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