On September 1, 2019, a firm accepted a 6-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

Question

Quizplus · Accepted Answer

The interest accrued for the note can be calculated as follows:

Interest = Principal x Rate x Time 
Interest = $12,000 x 0.08 x (4/12) (4 months from Sept 1 to Dec 31) 
Interest = $320

Therefore, the accrued interest recorded for this note on December 31, 2019, is $320. Option C is the correct answer.

On September 1, 2019, a Firm Accepted a 6-Month, 8