On April 1, 2019, a firm accepted a 6-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is

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The interest for the entire 6-month period would be $1,800 * 10% = $180. However, since the note was accepted on April 1 and the year ended on June 30, only 3 months of interest should be accounted for. Therefore, the interest for 3 months is $180 * (3/6) = $90. However, since the question asks for the interest recorded for the year ended June 30, 2019, and considering the fiscal year starts on July 1, only the interest for April, May, and June should be considered, which is correctly calculated as $90, not $45. My initial explanation mistakenly suggested the answer was D, but the correct calculation and explanation point to B as the correct answer.

On April 1, 2019, a Firm Accepted a 6-Month, 10