On November 15,2010,Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460.The note is due in 90 days and has an interest rate of 7.5%.What would be the amount required for the December 31,2010 adjusting journal entry?
A)$35,913.06
B)$34,615.00
C)$10,384.50
D)$1,298.06
E)$2,596.13

Question

Quizplus · Accepted Answer

The interest for the period from November 15 to December 31 (46 days) is calculated as $138,460 * 7.5% * (46/365) = $1,298.06.

On November 15,2010,Betty Corporation Accepted a Note Receivable in Place