The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2008 in exchange.

What is the interest rate implicit in the arrangement?
A) 29.6 per cent.
B) 16 per cent.
C) Cannot determine on the basis of the information provided.
D) 10 per cent.
E) 12 per cent.

Question

The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2008 in exchange.

What is the interest rate implicit in the arrangement?
A) 29.6 per cent. 
B) 16 per cent. 
C) Cannot determine on the basis of the information provided. 
D) 10 per cent. 
E) 12 per cent.

Quizplus · Accepted Answer

The Answer of The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2008 in exchange.

What is the interest rate implicit in the arrangement?
A) 29.6 per cent. 
B) 16 per cent. 
C) Cannot determine on the basis of the information provided. 
D) 10 per cent. 
E) 12 per cent.

The Following Journal Entries Were Recorded by a Vendor Who