Unquiet Hands, Inc. borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020. Which of the following journal entries should the firm use to accrue interest at the end of each month?

A.

Dr.Interest payable
  Cr.  Interest expense

B.
Dr.Interest receivable
  Cr.  Interest payable

C.
Dr.Interest payable
  Cr.  Cash

D.
Dr.Interest expense
  Cr.  Interest payable


Answer: D

Business

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