Answered: If the note has been outstanding 3…

If the note has been outstanding 3 months, what is the annual interest rate on that note? Interest Expense: $511 Interest Payable: $141 Note Payable: $4,700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

100%

Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.)

(1) If the note has been outstanding 3 months, what is the annual interest rate on that note?

Interest Expense: $511

Interest Payable: $141

Note Payable: $4,700

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