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

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.