Whenever the bank mails a credit memo to the depositor indicating the amount of interest credited to the account, the transaction that would be entered in the accounting records of the depositor would include

debiting Cash and crediting Interest Earned.

Explanation:

In the case when the interest is credited so the transaction that could be entered in the records of the accounting of the depositor would be involves by debited the cash and crediting the interest earned.

The journal entry is shown below:

Cash Dr  

        To Interest Earned

(Being interest earned is recorded)

Here cash is debited as it increased the asset and interest earned is credited as it increased the revenue

answer; the correct answer is (travel horizontally);