Identify any errors in the following partial balance sheet. The interest receivable should be __________________________________
__. The allowance for doubtful accounts should be ____________________________________.
WORD BANK
- added to the notes receivable
- deducted from accounts receivable
- reported separately as a current asset
- shown on the income statement as revenue
WORD BANK
- added to the notes receivable
- deducted from accounts receivable
- reported separately as a current asset
- shown on the income statement as revenue
1 answer:
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The number of years in which the money is in the account is 6 years.
<h3>What is simple interest?</h3>Simple interest denotes the amount of payment that is received or paid by a person in return for anything pledged or given a loan.
The interest computed on the principal amount for a specified duration of time and rate of interest is called simple interest.
The formula of simple interest:
Where, (P) stands for principal, (r) for interest rate, and (t) is for the time period.
<u>Computation </u><u>of a number of years:</u>
According to the given information,
P=$500,
r=7.5%,
t=?
SI= $225
Now, substitute the given values in the above formula, we have:
Therefore, the number of years is 6 years.
To learn more about the simple interest, refer to: