On October 1, 2016, a firm accepted a 4-month, 9% note for $32,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2016, is a. $2,880.00 b. $720.00 c. $240.00 d. No accrual is necessary

On October 1, 2016, a firm accepted a 4-month, 9% note for $32,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2016, is a. $2,880.00 b. $720.00 c. $240.00 d. No accrual is necessary

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

On October 1, 2016, a firm's accepted a 4- month... Please solve this general accounting question

On October 1, 2016, a firm accepted a 4-month, 9% note
for $32,000 from a customer with an overdue account
balance. The accrued interest recorded for this note on
December 31, 2016, is
a. $2,880.00
b. $720.00
c. $240.00
d. No accrual is necessary

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