The ABC Company accepted a 60 days note receivable from McDonald's that has now come due. The principal is $5,400 at 7%. The interest earned is:Multiple Choice$441.$44.$63.$38.$189.

The amount of money a borrower pays a lender in exchange for using their funds for a predetermined…

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Business

Accounting

The ABC Company accepted a 60 days note receivable from McDonald's that has now come due.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Question

The ABC Company accepted a 60 days note receivable from McDonald's that has now come due. The principal is $5,400 at 7%. The interest earned is:
Multiple Choice
$441.
$44.
$63.
$38.
$189.

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