Scenario:

Your company lends $$10,000$ to a customer by issuing a note receivable, which is due in $6$ months at a rate of $6\%.$

Explanation:

How does the company record the nterest revenue earned from the note receivable?

Scenario:

Your company lends $$10,000$ to a customer by issuing a note receivable, which is due in $6$ months at a rate of $6\%.$

Explanation:

How does the company record the nterest revenue earned from the note receivable?

Debit Cash, credit Interest Revenue.

Debit Interest Revenue, credit Interest Receivable.

Debit Interest Receivable, credit Interest Revenue.

Debit Interest Revenue, credit Cash.