Accrued interest will be ________ to interest account.

Debited

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Credited

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No effect

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None

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Solution

The correct option is D Credited
The amount of accrued interest for the recipient of the payment is a debit to the interest receivable (asset) account and a credit to the interest revenue account. The debit is rolled into the balance sheet (as a short-term asset) and the credit into the income statement.

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