Question
The company sold merchandise to a customer on March 31, 2020, for $100,000. The customer paid with a promissory note that has a term of
The company sold merchandise to a customer on March 31, 2020, for $100,000. The customer paid with a promissory note that has a term of 18 months and an annual interest rate of 9%. The companys accounting period ends on December 31.
What amount should the company recognize as interest income on December 31, 2020?
answer of choices
a.$6,750
b.$0
c.$7,500
d.$13,500
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones
5th Edition
0130906999, 978-0130906991
