A company received a Note Receivable from a customer for a sale. The 9 percent, 9-month note was received on May 31 for an amount of $150,000. Determine the company's accrued interest receivable (from this note) on its December 31 balance sheet.

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The interest for the note is calculated as Principal x Rate x Time = $150,000 x 9% x (7/12) = $7,875. The time is 7 months because from May 31 to December 31 is 7 months.

A Company Received a Note Receivable from a Customer for a Sale