Multiple Choice
Absolute Appliances
The company sold merchandise to a customer on December 1, 2019, for $120,000. The company accepted a promissory note as payment. The note has a term of three months and an annual interest rate of 10%. The company's accounting period ends on December 31.
-Refer to Absolute Appliances. What amount should the company recognize as interest revenue in 2020?
A) $ -0-
B) $1,000
C) $2,000
D) $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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