On October 1, Doe Hunting Supplies, a calendar-year company, sold inventory that cost $60,000 for $100,000. The customer signed a six-month, 10 percent note in payment. On December 31, Woods should

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The interest for three months (October to December) on the note is $2,500 (calculated as $100,000 * 10% * 3/12). This amount should be recorded as interest receivable.

On October 1, Doe Hunting Supplies, a Calendar-Year Company, Sold