Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $46,400, and the interest rate of the notes averaged 8.9%.
(a) Prepare a journal entry that accrues the interest income earned from the notes.
If the balance in the Interest Receivable account increased by $1,500 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year?
(b) Prepare a horizontal model to show the collection of this amount. (+ for increase and – for decrease).
(c) Prepare a journal entry to show the collection of this amount.