Carlock Systems Received a 6-Month, 12% Note for $50,000 from a Customer

question 67

Multiple Choice

Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2019. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2019 and 2020? ​
2019 2020

• A)$2,000 $1,000
• B)$1,000 $2,000
• C)$0 $6,000
• D)$1,000 $5,000

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Definitions:

Sterile Drape

A sterile cloth used to create a barrier between the surgical field and possible sources of bacteria during medical procedures.

Sterile Field

An area kept free of microorganisms to protect against infection during medical procedures, often created using sterile drapes and equipment.

Delegated Medical Functions

Tasks assigned to healthcare professionals by physicians that are within the scope of the professionals' training.

Safety Checklist

A list of items or criteria to be reviewed to ensure that an environment or procedure meets safety standards.