In October 1, 2019, Westfield, Inc. sold machinery to a customer for $ 25 comma 000. The customer could not pay at the time of

Question

3 years ago

7

In October 1, 2019, Westfield, Inc. sold machinery to a customer for $ 25 comma 000. The customer could not pay at the time of

sale, but agreed to pay 12 months later, and signed a 12minusmonth note at 11% interest. How much interest revenue was earned during 2019? Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.

Business

1 answer:

Virty [35] · Answer 1 · 2022-01-22T21:50:33+03:00

Answer:

Interest revenue for the year 2019 = $688

Explanation:

Total cost of asset = $25,000

Interest Revenue to be earned = 11% for 12 months

Total interest revenue = $25,000 X 11% = $2750

In the year 2011 the asset is sold on 1 October therefore interest revenue for the year 2011 will be from 1 October to 31 December = 3 months = $2,750 X $\frac{3}{12}$ = $687.50

Interest revenue for the year 2019 = $688

In October​ 1, 2019,​ Westfield, Inc. sold machinery to a customer for $ 25 comma 000. The customer could not pay at the time of

In October 1, 2019, Westfield, Inc. sold machinery to a customer for $ 25 comma 000. The customer could not pay at the time of