24. Claire Company uses accrual accounting and issues
financial statements every December 31. On July 1, 2021,
Claire Company lends Alex industries $40,000 and accepts
a 9-month, 9% interest note. Claire Company's required
adjusting entry on December 31, 2021, consists of
A) an $1,800 debit to Interest Receivable and an $1,800
credit to Interest Revenue.
B) a $3,600 debit to Interest Receivable and a $3,600 credit
to Interest Revenue.
C) a $2,400 debit to Interest Receivable and a $2,400 credit
to Interest Revenue.
D) an $1,800 debit to Notes Receivable and an $1,800 credit
to Interest Revenue.