On February 1 Carson Company received a $9000 4% four-month note receivable. The cash to be received by Carson Company when the note becomes due is

Question

Quizplus · Accepted Answer

To calculate the cash to be received when the note becomes due, we need to calculate the interest on the note first. 
Interest = Principal x Rate x Time
= $9000 x 4% x (4/12) year
= $120
Therefore, the cash to be received by Carson Company when the note becomes due is the sum of the principal and the interest.
Cash to be received = Principal + Interest
= $9000 + $120
= $9120

On February 1 Carson Company Received a $9000 4% Four-Month