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onendonlykisha
Apr 19, 2009, 12:57 PM
On November 1, Carlos Bakery receives a 6% interest-bearing note from Fix-it Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Carlos Bakery should record interest revenue of?

morgaine300
Apr 19, 2009, 05:42 PM
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pready
Apr 21, 2009, 05:38 PM
Interest is equal to Principal * Rate * Time, therefore you need to calculate 2 months of interest by the face amount of the note * 6% * 2/12