12) On July 8, Jones Inc. issued an $74,200, 9%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? When required, round your answer to the nearest dollar.

a.$1,281

b.$427

c.$6,678

d.$854