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Lyrx [107]
3 years ago
11

On October 1, Black Company receives a 6% interest bearing note from Reese Company to settle a $20,000 account receivable. The n

ote is due in six months. At December 31, Black should record interest revenue of:
A. $0
B. $300
C. $600
D. $1,200
Business
1 answer:
Ivanshal [37]3 years ago
7 0

Answer:

B. $300

Explanation:

The interest revenue is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $20,000 × 6% × (3 months ÷ 12 months)

= $300

The 6 months is calculated from October 1 to December 31

Simply we use the simple interest formula by considering the principal amount, rate of interest and time period so that the correct revenue can be computed

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<h3>What is the total profit?</h3>

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<h3>Data and Calculations:</h3>

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Learn more about total profits at brainly.com/question/21613450

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