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A $20,000, 9%, 3-Month Note Receivable Is Issued on December

Question 101

Multiple Choice

A $20,000, 9%, 3-month note receivable is issued on December 1, with interest due at maturity.When the note is paid the following February, the payee's entry includes (assuming a calendar-year accounting period) a credit to Interest Income of


A) $ 150.
B) $ 300.
C) $ 450.
D) $20,450.

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