Question

On September 1, 2019, a firm accepted a 6-month, 8% note for $36,000 from a customer...

On September 1, 2019, a firm accepted a 6-month, 8% note for $36,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is?

options

  • $2,880.00

  • $960.00

  • $240.00

  • No accrual is necessary

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Answer #1

Accrued interest recorded for this note on December 31, 2019= $36000*8%*4/12= $960

From September 1, 2019 to December 31, 2019= 4 months

So, the answer is option B) $960.00

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