Ask Question
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

+5
Answers (1)
  1. 25 July, 06:41
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers