Solved

Affinity Services Group Received a 12%, 6-Month Promissory Note with a Principal

Question 114

Essay

Affinity Services Group received a 12%, 6-month promissory note with a principal amount of $10,000 from a customer for the sale of merchandise on December 1, 2019.
A)How much interest revenue will the company recognize as of December 31, 2019?
B)How much interest revenue will the company recognize in 2020?
C)Determine the total amount of cash the company will collect on the date of the note's maturity.

Correct Answer:

verifed

Verified

A)$10,000 × 12% × 1/12= $100
B...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents