On 1 December 2014, Parsons Sales sold machinery to a customer for $2 000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9- month bill at 12% interest. What was the total amount of cash collected by Parsons when the bill matured?

Question

Quizplus · Accepted Answer

The interest for 9 months is calculated as $2,000 * 12% * (9/12) = $180. Therefore, the total amount collected is $2,000 + $180 = $2,180.

On 1 December 2014, Parsons Sales Sold Machinery to a Customer