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HOW TO FIND THE BLANK 3 I KNOW THE ANSWER SHOULD BE 473, BUT I DO NOT KNOW HOW TO GET TO IT On September
HOW TO FIND THE BLANK 3
I KNOW THE ANSWER SHOULD BE 473, BUT I DO NOT KNOW HOW TO GET TO IT
On September 1, 20X1, a company received a 3-year note from a customer in exchange for inventory. The note pays interest to the company at 3% at the end of each year and has a maturity amount of $30,000. The market interest rate was 5% on September 1, 20X1. The company has a December 31 year-end and uses the effective interest rate method. In the blank boxes below, please provide the required amounts indicated in the following order (when entering amounts please do not use commas, negative signs or dollar signs or cents). | Blank 3: The amount of interest income reported by the company in its statement of income for the year ended December 31, 20X1 (round to the nearest dollar)Step by Step Solution
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