On November 19, Hayes Company receives a $15,000, 60-day, 10% note from a customer as payment on his account. What adjusting entry should be made on the December 31 year-end? A) Debit Interest Receivable $175; credit Interest Revenue $175.
B) Debit Interest Receivable $250; credit Interest Revenue $250.
C) Debit Interest Receivable $75; credit Interest Revenue $75.
D) Debit Interest Revenue $175; credit Interest Receivable $175.
E) Debit Interest Revenue $250; credit Interest Receivable $250.

A) Debit Interest Receivable $175; credit Interest Revenue $175.

Explanation:

The adjusting entry that made as on December 31 is shown below;

Interest receivableDr  $175

         To Interest revenue  $175

(Being the interest receivable is recorded)

The computation is shown below:

= $15,000 × 10% × 42 days ÷ 360 days

= $175

The 42 days are from November 19 to December 31

Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi