Question
On July 8, Jones Inc. issued an $67,500, 7%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31.
On July 8, Jones Inc. issued an $67,500, 7%, 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.$302
b.$604
c.$906
d.$4,725
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0471072419, 978-0471072416
