On December 1, 2015, Parsons Inc. sold machinery to a customer for $20,000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 9% interest. How much interest revenue was earned during the year 2016? - $1,200 - $1,600 - $900 - $1,800

On December 1, 2015, Parsons Inc. sold machinery to a customer for $20,000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 9% interest. How much interest revenue was earned during the year 2016? - $1,200 - $1,600 - $900 - $1,800

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1P: Allowance Method for Accounting for Bad Debts At the beginning of 2016, EZ Tech Companys Accounts...

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Question

General Accounting question please solve this

On December 1, 2015, Parsons Inc. sold
machinery to a customer for $20,000. The
customer could not pay at the time of sale,
but agreed to pay 9 months later, and
signed a 9-month note at 9% interest. How
much interest revenue was earned during
the year 2016?
- $1,200
- $1,600
- $900
- $1,800

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