A $20,000, 9%, 3-Month Note Receivable Is Issued on December

question 35

Multiple Choice

A $20,000, 9%, 3-month note receivable is issued on December 1, with interest due at maturity. When the note is paid the following February, the payee's entry includes (assuming a calendar-year accounting period) a credit to interest revenue of

• A)$ 150.
• B)$ 300.
• C)$ 450.
• D)$20,450.

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Definitions:

Dissolution

The process by which a substance is dissolved by a solvent, resulting in a solution, especially referring to minerals in rocks by water.

Transported

Refers to materials or sediment that have been moved and deposited in a new location by natural processes.

Delta

A landform at the mouth of a river where it splits into several branches, depositing sediments carried from upstream, typically forming a triangular shape.

Deposits Load

Material carried by water, wind, or ice and deposited in a new location, contributing to the formation of sedimentary layers and landforms.