Verilux Company Sold Merchandise to Flight Corp

question 152

Multiple Choice

Verilux Company sold merchandise to Flight Corp.on November 1, 2016, for $10,000.Verilux accepted a promissory note from Flight Corp.for $10,000.The note has a term of 5 months and a stated interest rate of 7%.Verilux's accounting period ends on December 31, 2016.What amount should Verilux recognize as interest revenue on the maturity date of the note?

• A) $ -0-
• B) $ 175.00
• C) $ 291.67
• D) $ 420.00

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Definitions:

Phenomenon

An observable event or fact, especially one that is not fully understood or that is out of the ordinary.

Behavioural Change

Modifications in individual actions or habits typically resulting from intervention or self-improvement efforts.

Previous Experience

Refers to the background or history an individual possesses in a specific domain, skill set, or activity before a current endeavor or analysis.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.