Carolina Supply accepted an eight-month, $16,000 note receivable, with 8% interest, from Reading Corporation on August 1, 2019. Carolina Supply's year end is December 31. The amount of interest to be accrued on December 31, 2019 is:

Question

Quizplus · Accepted Answer

The interest for the period from August 1 to December 31 (5 months) is calculated as follows: $16,000 * 8% * (5/12) = $533.33, which rounds to $533.

Carolina Supply Accepted an Eight-Month, $16,000 Note Receivable, with 8