On October 1,2017,Android,Inc

question 107

Multiple Choice

On October 1,2017,Android,Inc.made a loan to one of its customers.The customer signed a 4-month note for $110,000 at 12%.How much interest revenue did the company record in the year 2017? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

• A)$1,320
• B)$1,100
• C)$4,400
• D)$3,300

---

Definitions:

Bad Debts Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect, thus written off as a loss.

Uncollectible Accounts

Refers to receivables that a company has deemed unrecoverable and is unlikely to collect.

Financial Reports

These are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a company's financial performance and financial position in both short and long term.

Allowance For Uncollectibles

A balance sheet account estimating the portion of receivables that a company does not expect to collect.