A Better Mousetrap
The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid with a promissory note that has a term of 6 months and an annual interest rate of 9%. The company's accounting period ends on December 31.
-Refer to A Better Mousetrap. What amount should the company recognize as interest revenue on December 31, 2019?
A) $ -0-
B) $ 750
C) $1,500
D) $9,000
Correct Answer:
Verified
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