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Equestrain Roads sold $120,000 of goods and accepted the customer's $120,000 10%, 1-year note in exchange. Assuming 10% approximates the market rate of return, how much interest revenue would be recorded for the year ending December 31 if the sale was made on June 30

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Zviko

Answer:

$6,000

Explanation:

Interest calculation : June 30 - December 31

Time frame between the two dates is 6 months, thus charge half year`s interest.

Interest calculation = $120,000 x 10 % x 1/2 = $6,000

therefore,

The  interest revenue that would be recorded for the year ending December 31 if the sale was made on June 30 is $6,000.

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