Your company has loaned money to an outside entity. You earned the monthly interest on the loan but did not receive the payment yet. The payment is expected to be received next month. To capture the...

Your company has loaned money to an outside entity. You earned the monthly interest on the loan but did not receive the payment yet. The payment is expected to be received next month. To capture the interest expected to be received in the future you have created account #901 , Interest Receivable in your chart of accounts and booked the journal entry to DR: Interest Receivable and CR: Interest Income. While the basic journal entry was correct, your manager is questioning how you setup this new account. Based on this image of the chart of accounts below what needs to be corrected and how would you correct this?

Extracted text: Number Name Туре Detail Type 133 133 Supplies On Hand Other Current Assets Prepaid Expenses 135 135 Prepaid Insurance Other Current Assets Prepaid Expenses 136 136 Prepaid Rent Other Current Assets Prepaid Expenses 138 138 Other Prepaid Expenses Other Current Assets Prepaid Expenses 150 150 Undeposited funds Other Current Assets Undeposited Funds 180 180 Computer Equipment Fixed Assets Machinery & Equipment 182 182 Office Furniture & Equipment Fixed Assets Machinery & Equipment 184 184 Computer Software Fixed Assets Fixed Asset Software 189 189 Accumulated Depreciation Fixed Assets Accumulated Depreciation 195 195 Security Deposit Other Assets Security Deposits 901 901 Interest Receivable Other Assets Other Long-term Assets