On 1 September 2013, Adirondac Marine Supplies made a credit sale to one of its customers. The customer signed a 6- month bill for $1 500 at 10%. How much interest revenue did Adirondac record in the year 2014?

Question

Quizplus · Accepted Answer

The interest for the 6-month period is calculated as $1,500 * 10% * (6/12) = $75. Since the bill was signed on 1 September 2013, the interest for 2013 would be for 4 months, which is $1,500 * 10% * (4/12) = $50. Therefore, the interest for 2014 (the remaining 2 months) is $75 - $50 = $25.

On 1 September 2013, Adirondac Marine Supplies Made a Credit