The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2012 in exchange. What is the interest rate implicit in the arrangement?
A) 29.6%
B) 16%
C) 10%
D) 12%

Question

The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2012 in exchange.  What is the interest rate implicit in the arrangement?
A) 29.6% 
B) 16% 
C) 10% 
D) 12%

Quizplus · Accepted Answer

The Answer of The following journal entries were recorded by a vendor who sold goods and received promissory notes on 1 July 2012 in exchange.  What is the interest rate implicit in the arrangement?
A) 29.6% 
B) 16% 
C) 10% 
D) 12%

The Following Journal Entries Were Recorded by a Vendor Who