Question: On August 1 , 2 0 2 4 , Avonette, Inc., sold equipment and accepted a six - month, 9 % , $ 5 0

On August 1,2024, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000 note
receivable. Avonette's year-end is December 31. If Avonette fails to make an adjusting entry for the
accrued interest on December 31,2024,
A. net income will be understated and assets will be understated.
B. net income will be overstated and liabilities will be understated.
C. net income will be overstated and assets will be overstated.
D. net income will be understated and liabilities will be overstated.
On August 1,2024, Avonette, Inc., sold equipment and accepted a six-month,

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