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On September28,Reeve Incorporated purchased equipment with a purchase price of$38,313plus5%sales tax.Shipping terms were FOB Shipping Point and shipping charges were$259.Installation was completed,and the new equipment

On September28,Reeve Incorporated purchased equipment with a purchase price of$38,313plus5%sales tax.Shipping terms were FOB Shipping Point and shipping charges were$259.Installation was completed,and the new equipment was placed in service on October1.Installation costs totaled$905.The shipping and installation costs were paid for in cashonSeptember28.The equipment purchase price,including sales tax,was paid for by issuing a120day6%Note PayableonOctober1.Based on past experience,the equipment is expected to have a useful life of7years,at which time it will have an estimated worth of$4,462.The equipment will be depreciated using the Straight Line method.

Assuming a360-day yearfor your calculation,what is theAccrued Interest Expense on the Note on October31?

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