Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.When Ace first accepts the note,it should record interest receivable of ________.

Question

Quizplus · Accepted Answer

When Ace first accepts the note, no interest has yet accrued, so it should record interest receivable of $0. Interest will accrue over the term of the note.

Ace Electronics Accepted a Promissory Note from Fenstermaker,who Promised to Pay