Frankenstein Enterprises received two notes from customers for sales that Frankenstein made to them in 2013. The notes included: Note A: Dated 5/31/2013, principal of $120,000 and interest due 3/31/2014.
Note B: Dated 7/1/2013, principal of $200,000 and interest at 8% annually, due on 4/1/2014.
Frankenstein had accrued interest receivable from these notes of $14,400 on its 12/31/2013 balance sheet. What amount of interest revenue would Frankenstein earn on these notes during 2014?
A) Above $12,000.
B) Between $7,000 and 10,000.
C) Less than $5000.
D) None of the above is correct.
Correct Answer:
Verified
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