Dawson Inc. issued a 90-day note in the amount of $200,000 on July 1, 2022, with an annual rate of 5%. What amount of interest has accrued as of August 31, 2022? (a) $833 (b) $2,500 (c) $1,722 (d) $1,250

Dawson Inc. issued a 90-day note in the amount of $200,000 on July 1, 2022, with an annual rate of 5%. What amount of interest has accrued as of August 31, 2022? (a) $833 (b) $2,500 (c) $1,722 (d) $1,250

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Question

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What amount of interest has accrued as of August 31, 2022 on these financial accounting question?

Dawson Inc. issued a 90-day note in the amount of
$200,000 on July 1, 2022, with an annual rate of 5%.
What amount of interest has accrued as of August 31,
2022?
(a) $833
(b) $2,500
(c) $1,722
(d) $1,250

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