As promise for future payment, Carlock Systems received a six-month, 12% note for $50,000 from a customer on November 1, Year 1. The note is due on April 30, Year 2. Assuming the company’s accounting period ends on December 31, how much interest revenue should be recognized during Year 1 and Year 2 under accrual accounting? Year 1: $2,000; Year 2: $1,000 Year 1: $0; Year 2: $6,000 Year 1: $1,000; Year 2: $5,000 Year 1: $1,000; Year 2: $2,000
As promise for future payment, Carlock Systems received a six-month, 12% note for $50,000 from a customer on November 1, Year 1. The note is due on April 30, Year 2. Assuming the company’s accounting period ends on December 31, how much interest revenue should be recognized during Year 1 and Year 2 under accrual accounting? Year 1: $2,000; Year 2: $1,000 Year 1: $0; Year 2: $6,000 Year 1: $1,000; Year 2: $5,000 Year 1: $1,000; Year 2: $2,000
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...
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As promise for future payment, Carlock Systems received a six-month, 12% note for $50,000 from a customer on November 1, Year 1. The note is due on April 30, Year 2. Assuming the company’s accounting period ends on December 31, how much interest revenue should be recognized during Year 1 and Year 2 under accrual accounting?
Year 1: $2,000; Year 2: $1,000
Year 1: $0; Year 2: $6,000
Year 1: $1,000; Year 2: $5,000
Year 1: $1,000; Year 2: $2,000
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