Question
Wood Corp. is a manufacturer of custom furniture built using reclaimed wood. On April 30, Year 1, Wood sold and delivered a dining table and
Wood Corp. is a manufacturer of custom furniture built using reclaimed wood. On April 30, Year 1, Wood sold and delivered a dining table and 12 chairs to a customer. If the customer had paid that day, the total cost would have been $35,000. Instead, Wood accepted $15,000 cash on April 30, with a further payment of $25,000 to be made on April 30, Year 3. Wood has a June 30 year end and prepares its financial statements in accordance with IFRS. What is the total interest revenue that Wood will record as a result of this contract for its June 30, Year 1, year end (round the interest rate to one decimal point)?
A) | $492 |
B) | $727 |
C) | $2,360 |
D) | $393 |
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