Question
Asked Mar 19, 2019
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Calculating Interest on Promissory Notes Receivable
Dallas Company receives a six-month note from a customer. The note has a
face amount of $8,000 and an interest rate of nine percent.
What is the total amount of interest income to be received?
O$720
$540
$360
$180
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Calculating Interest on Promissory Notes Receivable Dallas Company receives a six-month note from a customer. The note has a face amount of $8,000 and an interest rate of nine percent. What is the total amount of interest income to be received? O$720 $540 $360 $180

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Expert Answer

Step 1

Calculating the value of total amount of interest income for a 6-months note. We have,

Total amount of interest income = Face Value of Note x Interest rate x 6/12

Here,

Face value of note = $ 8,000

Interes...

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