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Carlock Systems Received a 6-Month, 12% Note for $50,000 from a Customer

Question 67

Multiple Choice

Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2019. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2019 and 2020? ​
2019 2020


A) $2,000 $1,000
B) $1,000 $2,000
C) $0 $6,000
D) $1,000 $5,000

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