ANSWERS TO QUESTIONS

Under the accrual basis of accounting, revenue is recognized when it is earned and expenses are recognized when incurred, without regard to the time of the receipt or payment of cash. ... 300 Feb. 1 Cash 10,400 Notes Receivable 10,000 Interest Receivable 300 Interest Revenue 100 BRIEF EXERCISE 3-9. Dec. 31 Interest Expense 400 Interest Payable ... ................
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