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On October 1 , Black Company receives a 1 0 % interest - bearing note from Reese Company to settle a $ 1 7 ,

On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a $17,400 account receivable. The note is due in six months. At December 31, Black should record interest revenue of
a. $432
b. $445
c. $435
d. $442

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