When calculating Interest revenue of 90 days or 180 days outstanding, why do we not use 90 and 180 for the denominator and instead we use 360? effective rate of interest of 10% interest for 90 days will be not 10% isn't it?

Practice Exercise 2 Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $12,600 cash to Manny Lopez on a 12-month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $24,750, 90-day, 8% note. Received a $22,800, 180 day, 10% note in exchange for Joe Fernetti's outstanding accounts receivable. Accrued interest revenue on all notes receivable. Your answer is correct. Journalize the transactions for Elburn Supply Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Nov. 1 Notes Receivable 12600 Cash 12600 I Cash Dec. 11 |Notes Receivable Dec. 11 Notes Receivable 4750 Notes Receivable Sales Revenue 24750 Dec. 16 A Notes Receivable 30