Multiple Choice Question Tresses, Inc., which has a December 31 year end, lent $1,000 on December 1 to an employee at 6% due in 6 months. When will Tresses record Interest Revenue? It will record ______. Multiple choice question. an adjusting entry on December 31 with a debit to Interest Receivable and credit to Interest Revenue for the interest generated in December a daily entry with a debit to Interest Receivable and credit to Interest Revenue for each day's interest generated interest earned on the payment date with a debit to Cash and credit to Interest Revenue for the 6 months of interest generated

Adjusting entries and journal entries used in accounting and accounting to assign income and expenditure to the period in which they actually occurred.
They are often made at the end of an accounting period. Under accrual-basis accounting, the revenue recognition principle serves as the foundation for adjusting entries related to unearned and accrued revenues.
Because they are done on balance day, they are occasionally referred to as balance day adjustments.
Revenues and related costs are recorded in the same accounting period according to the matching concept of accrual accounting.
The actual money, however, can be received or paid at a separate period.

What is Interest receivable?

The amount of interest that has been earned but has not yet been paid out in cash is known as interest receivable.
Many organizations won't record this number because they believe it to be irrelevant.

Therefore, it will record an Adjusting entry on December 31 with a debit to Interest receivable and credit to Interest Revenue for the interest generated in December.

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