Answered: If the note has been outstanding 3…

If the note has been outstanding 3 months, what is the annual interest rate on that note? Interest Expense: 511 Note Payable: 4700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Question

If the note has been outstanding 3 months, what is the annual interest rate on that note?

Interest Expense: 511

Note Payable: 4700

Expert Solution

Introduction

Note outstanding = 3 month

Interest Expense = 511

Note Payable = 4700

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