Milton Company,a Valued Customer,placed an Order for $1,500 on January $\begin{array}{ll}\text { Notes recelvable } & 10 \\\quad \text { Interest revenue } & & 10\\\end{array}$

question 121

Multiple Choice

Milton Company,a valued customer,placed an order for $1,500 on January 1.Because Milton is experiencing financial difficulties,it has been allowed to pay with a 3-month note receivable.The interest rate on the note is 8%.What adjusting entry is necessary for Oleke Manufacturing on January 31?

• A)\(\begin{array}{ll}
• \text { Notes recelvable } & 10 \\
• \quad \text { Interest revenue } & & 10\\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \text { Accrued interest receivable } & 120 \\
• \quad \text { Interest revenue } && 120 \\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { Accrued interest receivable } & 10 \\
• \quad \text { Interest revenue } & & 10\\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { Notes receivable }&120 \\
• \quad\text { Interest revenue }&&120 \\
• \end{array}\)
• E)\(\begin{array}{lccc}
• \text { Notes receivable } &60\\
• \quad\text { Interest revenue }&&60
• \end{array}\)

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Market Dominance

Market dominance refers to the situation where a company has a significant share of the total sales of a particular product or service, giving it substantial control over the market.

Herfindahl Index

The Herfindahl Index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them, calculated by summing the squares of each firm's market share.

Clayton Act

A U.S. antitrust law enacted in 1914 to promote competition and prevent monopolies by prohibiting certain actions that could lead to anticompetitive practices.