On october 1, black company receives a 6% interest bearing note from reese company to settle a $20,000 account receivable. the note is due in six months. at december 31, black should record interest revenue of:
a. $0
b. $300
c. $600
d. $1,200

B. $300

Explanation:

The interest revenue is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $20,000 × 6% × (3 months ÷ 12 months)

= $300

The 6 months is calculated from October 1 to December 31

Simply we use the simple interest formula by considering the principal amount, rate of interest and time period so that the correct revenue can be computed

answercombination of ability and experience of the partners;

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.