4 Cash receipts Beginning cash balance Cash payments Desired ending cash balance $275,000 6,000 286,000 26,000 If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be: Multiple Choice $270. O $430. $236. O O $310