Multiple Choice
On November 1, Year 1, Dorian Collections Agency accepted a $100,000, 3-month note from a customer.The note earns 9% interest per year.What is the amount of interest receivable recorded by Dorian Collections Agency at December 31, Year 1? (Assume no other entries to record interest have been made.)
A) $9,000
B) $1,500
C) $750
D) $0, because interest is not due until February 1 of Year 2
E) $900
Correct Answer:
Verified
Correct Answer:
Verified
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