A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1, If the company's fiscal year end is December 31, how much interest should the company accrue at year end? O $300 O $150 O $37.50 O $25

A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1, If the company's fiscal year end is December 31, how much interest should the company accrue at year end? O $300 O $150 O $37.50 O $25

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

A company grants a payment extension to its customer by converting that $15,000 accounts payable to a 45 day note payable at 12% interest on December 1. If the company's fiscal year end is December 31, how
much interest should the company accrue at year-end?
O $300
O $150
O $37.50
O $25

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