Question Content Area

On July $8,$ Jones Inc. issued an $$80,000,6\%,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?

a$.$ $$4,200$

b$.$ $$1,400$

c$.$ $$700$

d$.$ $$307$