Abbot Safe & Lock
the Following Information Was Obtained from the Company's

question 107

Multiple Choice

Abbot Safe & Lock
The following information was obtained from the company's records for Year 1:
$\begin{array}{lr}\text { Credit sales during the year } & \$ 3,200,000 \\\text { Accounts receivable-December 31, Year 1 } & 325,000 \\\text { Allowance for doubtful accounts-December 31, Year 1 } & 35,000 \\\text { Bad debt expense for the year } & 20,000\end{array}$

-Refer to the figure A Better Mousetrap.What amount should the company recognize as interest revenue on the maturity date of the note?

• A) $0
• B) $3,750
• C) $4,500
• D) $9,000

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Definitions:

Financial Services Market

A market that comprises establishments engaged in transactions and activities related to financial services like banking, investment, and insurance.

Apple Card

A credit card created by Apple Inc. designed to be used with Apple Pay, offering cashback rewards and various features integrated with iOS.

Credit Card Use

The application of credit cards as a payment method where the cardholder borrows funds to pay for goods and services with the promise to repay the borrowed amount along with any agreed-upon fees or interest.

Market Development

A growth strategy where a company seeks to increase sales by promoting its existing products in new markets or to new segments.