Your company lent $175,000 to a customer on April 1. The customer signed a 5-month,...
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Accounting
Your company lent $175,000 to a customer on April 1. The customer signed a 5-month, 9% interest bearing note. The amount borrowed with accrued interest is due on September 1. Your companys fiscal year end is May 31. Interest calculations is based on months.
1. Interest revenue recognized on May 31: Answer
2. Interest revenue recognized on September: Answer
3. Cash expected upon collection of the note on September 1Answer
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