Interest earned and receivable on a note receivable equals $75 for the month of March. What adjusting entry, if any, should be recorded as of March 31?
A. Debit Interest Revenue $75 and credit Interest Receivable $75.
B. Debit Interest Receivable $75 and credit Interest Revenue $75.
C. Debit Cash $75 and credit Interest Revenue $75.
D. No journal entry is needed at this time.
Answer: B
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