Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 49)
What would be the correct adjusting entry to record accrued interest expense?
Debit Interest Expense, Credit Interest Payable
Debit Interest Payable, Credit Interest Expense
Debit Cash, Credit Interest Expense
Debit Interest Expense, Credit Cash
Explanation
The debit increases the interest expense account, and the credit increases the interest payable (liability) account.
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