Franklin Company obtained a $160,000 line of credit from State Bank on January 1,Year 1.The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate.The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table.Assume that Franklin borrows or repays on the first day of each month.
What is the amount of interest expense recognized in March?
Definitions:
Decision Maker
An individual or group responsible for making choices that will affect the outcome of a particular process or situation.
Purchaser
An individual or organization that buys goods or services for personal use or for further processing or manufacturing.
Culture
The set of values, ideas, and attitudes that are learned and shared among the members of a group.
Values
Core beliefs or principles that guide an individual's or organization's actions and decision-making processes.
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