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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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428704
