Question: Thomas Co. has a 11-month note receivable that it issued on October 1, 2016 for $1,000,000 to replace an accounts receivable. The interest rate for

Thomas Co. has a 11-month note receivable that it issued on October 1, 2016 for $1,000,000 to replace an accounts receivable. The interest rate for the note 5%. Prepare the accrual entry for December 31st. What account is debited to accrue interest at December 31st? What account is credited to accrue interest at December 31st? What is the amount of the interest accrued at 12/31/16? What is the amount of interest revenue recorded in 2017?

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