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On March 1,2014,Bayonne Services Made a Loan to One of Its

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On March 1,2014,Bayonne Services made a loan to one of its officers.The officer signed a 6-month note for $4,000 at 8%.Bayonne generally accrues interest at year-end only,so at the time the note matured,Bayonne had not accrued any interest revenue.On August 1 when the note matured,the officer settled in full with the company.How much interest revenue did Bayonne record?


Definitions:

Retail Inventory Method

The retail inventory method is an accounting technique used by retailers to estimate their inventory's ending balance/cost based on the relationship between the cost of merchandise and its retail price.

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