ABC Company loaned $50,000 to DEF Company on November 1. What should ABC's December 31 adjusting entry include if this loan earns interest at a rate of 3% annually? O a credit to Interest Revenue of $125. O a credit to Interest Revenue of $250. a debit to Interest Receivable of $500. O a debit to Interest Receivable of $1,500.
ABC Company loaned $50,000 to DEF Company on November 1. What should ABC's December 31 adjusting entry include if this loan earns interest at a rate of 3% annually? O a credit to Interest Revenue of $125. O a credit to Interest Revenue of $250. a debit to Interest Receivable of $500. O a debit to Interest Receivable of $1,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Company loaned $50,000 to DEF Company on November 1. What should ABC's December 31 adjusting entry include if this loan
earns interest at a rate of 3% annually?
O a credit to Interest Revenue of $125.
O a credit to Interest Revenue of $250.
a debit to Interest Receivable of $500.
a debit to Interest Receivable of $1,500.
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