If a bank statement includes an EFT receipt of $200 for interest,the journal entry to record this reconciling item should include a:
A)debit to Cash for $200 and a credit to Interest Revenue for $200.
B)debit to Accounts Receivable for $200 and a credit to Interest Revenue for $200.
C)debit to Interest Revenue for $200 and credit to Cash for $200.
D)debit to Interest Expense for $200 and credit to Prepaid Interest for $200.

Question

Quizplus · Accepted Answer

The correct journal entry for receiving interest through an EFT (Electronic Funds Transfer) involves increasing the bank balance (Cash) by debiting it and recognizing the income by crediting Interest Revenue.

If a Bank Statement Includes an EFT Receipt of $200