Question
On June 1, Davis Inc. issued an $81,600, 7%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
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On June 1, Davis Inc. issued an $81,600, 7%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using the 360-day year, what is the amount of interest revenue recognized by Garcia in the following year? Round your answer to the nearest whole dollar.
a.$1,444
b.$952
c.$5,712
d.$476
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Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
