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On October 1, Black Company receives a 9% interest bearing note from Reese Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of A. $0B. $450C. $900D. $1,800

Respuesta :

Answer:

Ans. B) $450

Explanation:

Hi, the interest rate, for a period of time of one year is:

interest=$20,000*0.09= $1,800

But only 3 years had passed (from October 1 to December 31), therefore, Black can only record an interest revenue of

Interest(3 months)= $1,800/4= $450

Best of luck.

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