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ABC Company Signed a One-Year $48,000 Note Payable at 8

Question 119

Multiple Choice

ABC Company signed a one-year $48,000 note payable at 8% interest on May 1, 2014. If ABC only adjusts their accounts once a year at year-end, how much interest expense was accrued on December 31, 2014?


A) $1,280
B) $3,840
C) $2,560
D) $3,200

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