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On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable. The not is due in six months. At December 31, Black should record interest revenue of
a. $0
b. $450
c. $900
d. $1800

Respuesta :

ogorwyne

Answer:

B. $450

Explanation:

Interest rate = 9% = 0.09

Account receivable = $20,000

Interest = 0.09 x 20,000

= $1,800

At December 31, Black should record interest revenue of

1,800 x (90/360)

= 1,800 x 0.25

= $450

The answer is $450

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