On October 1, 2019, Fashion Jewelers accepted a 5-month, 11% note for $7,500 in settlement of an overdue account receivable. The accounting period ends on December 31. Calculate the accrued interest on the note at December 31, 2019. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The accrued interest on the note at December 31, 2019, can be calculated as follows: Interest = Principal × Rate × Time = $7,500 × 11% × (3/12) = $206.25. When rounded to the nearest dollar, the accrued interest is $206.

On October 1, 2019, Fashion Jewelers Accepted a 5-Month, 11