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:

Place Theory

A theory in hearing that suggests that our perception of sound depends on where each component frequency produces vibrations along the basilar membrane of the inner ear.

Helmholtz

Refers to Hermann von Helmholtz, a 19th-century German scientist known for his contributions to the study of vision, hearing, and the conservation of energy.

Place Theory

A theory in hearing that proposes different areas of the cochlea are activated by different frequencies of sounds, contributing to the perception of pitch.

Oval Window

A membrane-covered opening that leads from the middle ear to the vestibule of the inner ear and is involved in the process of hearing.