Gomez Management Services Inc. accepts an 18-month, 12%, $5,000 note receivable from a client in settlement of an outstanding accounts receivable on November 1, 2018. The client pays off the note on April 30, 2020. Gomez should recognize interest revenue in 2020 of

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The interest revenue for 2020 is calculated from January 1, 2020, to April 30, 2020, which is 4 months. The annual interest is 12% of $5,000 = $600. For 4 months, the interest is ($600/12) * 4 = $200.