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25 July, 03:35

CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.$232 d.$222

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  1. 25 July, 06:41
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    Option A, $225 is correct

    Explanation:

    The interest revenue=face value of the note*interest rate*3/12

    Three months of interest revenue is due from October 1st till December 31st.

    The interest revenue that Black company would recognize = $15,000*6%*3/12=$225

    The correct option is A,$225 amount of interest revenue would be recorded by Black Company in the year by debiting interest receivable (pending the maturity of the note) and crediting interest revenue
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Home » Business » CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.
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