On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $21,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $210 Ob. $207 Oc. $217 Od. $220

On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $21,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $210 Ob. $207 Oc. $217 Od. $220

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $21,000 account receivable. The note is due in six
months. At December 31, Black should record interest revenue of
Oa. $210
Ob. $207
Oc. $217
Od. $220

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