Verilux Company Sold Merchandise to Flight Corp

question 34

Multiple Choice

Verilux Company sold merchandise to Flight Corp.on November 1,2017,for $10,000.Verilux accepted a promissory note from Flight Corp.for $10,000.The note has a term of five months and a stated interest rate of 7%.Verilux's accounting period ends on December 31,2017.What amount should Verilux recognize as interest revenue on December 31,2017?

• A)$0
• B)$116.67
• C)$291.67
• D)$280.00

---

Definitions:

Malaria

A disease caused by a plasmodium parasite, transmitted by the bite of infected mosquitoes.

Dewpoint

The temperature at which air must be cooled, at constant pressure and water vapor content, for it to reach saturation and produce dew.

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.

Least-square Regression

Rephrasing of KT-14; Refers to the method used to find the line that minimizes the sum of the squares of the differences between observed and predicted values.