UNIT #8 - ADJUSTING ENTRIES
~ Interest earned is another typical example. Interest is a function of time and must be . accrued. as time elapses. Suppose you have a note receivable amounting to $ 10,000 from a loan your company made. The note carries interest @ 8% per annum (year). The principle, $ 10,000, is not due for one year; the interest is recorded each month till ... ................
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