The company maintained a line of credit during the year which shows a balance of...
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Accounting
The company maintained a line of credit during the year which shows a balance of $2,300 as of October 2021. Wheels agreement with the bank is to pay 2% above the prime rate.
QUESTION: What is your expectation of interest rates for the 2021 year? If you use the debt amount listed above, what assumption are you making about the balance of debt for the year? What procedures can the auditors do to estimate an interest rates and amounts?
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