Question

fill in the blank question
for the current year, a business has earned but not recorded or received $200 of interest from investments. demonstrate the required adjusting entry by completing the following sentence.
the required adjusting entry would be to debit the (unearned revenue/accounts receivable/cash/interest receivable) account and (debit/credit)
the (cash/accounts receivable/interest revenue/interest receivable) account.
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Explanation:

This is an accrued revenue scenario: the business has earned interest but not yet received it. Accrued revenues require a debit to an asset account (Interest receivable, to record the amount owed to the business) and a credit to a revenue account (Interest revenue, to recognize the earned income) in the adjusting entry. Cash is not involved because no payment has been received, and Accounts receivable is for customer credit sales, not investment interest.

Answer:

1. Interest receivable
2. credit
3. Interest revenue