On September 1,20A,Dawn Equipment Signed a One-Year,7% Interest-Bearing Note Payable

On September 1,20A,Dawn Equipment signed a one-year,7% interest-bearing note payable for $5,000.Assuming that Dawn maintains its books on a calendar year basis,what is the amount of interest expense that should be reported in the 20B income statement for this note (rounded to the nearest dollar) ?

A) $233
B) $267
C) $300
D) $400