Absolute Appliances
The company sold merchandise to a customer on December 1, Year 1, for $120,000. The company accepted a promissory note as payment. The note has a term of three months and an annual interest rate of 10%. The company's accounting period ends on December 31.
-Refer to the figure Absolute Appliances.What amount should the company recognize as interest revenue on December 31,Year 1?
A) $0
B) $ 1,000
C) $11,000
D) $12,000
Correct Answer:
Verified
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