Universal Travel,Inc.borrowed $500,000 on November 1,2018,and signed a twelve-month note bearing interest at 6%.Principal and interest are payable in full at maturity on October 31,2019.In connection with this note,Universal Travel,Inc.should record interest expense in 2019 in the amount of:
A) $8,000.
B) $30,000.
C) $5,000.
D) $25,000.
Correct Answer:
Verified
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