A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1, If the company's fiscal year end is December 31, how much interest should the company accrue at year end? O $300 O $150 O $37.50 O $25

A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1, If the company's fiscal year end is December 31, how much interest should the company accrue at year end? O $300 O $150 O $37.50 O $25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1. If the company's fiscal year end is December 31, how
much interest should the company accrue at year-end?
O $300
O $150
O $37.50
O $25

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