On august 1, kim company accepted a 90-day note receivable as payment for services provided to hsu company. the terms of the note were $8,500 face value and 7% interest. on october 30, the journal entry to record the collection of the note should include a.
a) credit to interest revenue for $149
b) interest revenue for $349
c) notes receivable for $249
d) interest receivable for $49

The correct answer is " A) Credit to Interest Revenue for $149 "

Explanation: The interest earned must be recognized, therefore "A) Credit to Interest Revenue for $ 149"

The interest calculation is:

8500 x 0.07 x (90/360) =

8500 x 0,07 x 0,25 = 148,75 and we round to $149.

Explanation:

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $8,500 face value and 7% interest. On October 30, the journal entry to record the collection of the note should include a.

ansA) Credit to Interest Revenue for $149

answer; /// i believe the correct answer is first in, first out(fifo); //

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explanation: