On October 1,2015,Ealys Jewelers accepted a 4-month,12% note for $6,000 in settlement of an overdue account receivable.The company closes its accounts at the year end.Calculate and record the accrued interest on the note at December 31,2015.

Question

Quizplus · Accepted Answer

The interest for 3 months (October to December) is calculated as $6,000 * 12% * (3/12) = $180.

On October 1,2015,Ealys Jewelers Accepted a 4-Month,12% Note for $6,000