Frankenstein Enterprises Received Two Notes from Customers for Sales That

question 89

Multiple Choice

Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2018. The notes included:
Note A: Dated 5/31/2018, principal of $120,000 and interest due 3/31/2019.
Note B: Dated 7/1/2018, principal of $200,000 and interest at 8% annually, due on 4/1/2019.
Frankenstein had accrued a total of $14,400 interest receivable from these notes in its 12/31/2018 balance sheet.
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Assume Frankenstein views the financing component of these sales to be significant. What amount of interest revenue would Frankenstein earn on these notes during 2019?

• A) Above $12,000.
• B) Between $7,000 and 10,000.
• C) Less than $5,000.
• D) None of these answer choices are correct.

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Definitions:

Maladaptive

Behaviors or traits that are counterproductive to the survival or reproductive success of an organism.

Blind Spot

An area in the visual field that lacks photoreceptor cells, where the optic nerve exits the eye, leading to a lack of visual detection in that spot.

Retina

A light-sensitive layer of cells found at the back of the eye's inner surface, responsible for converting light into neural signals that are sent to the brain, enabling vision.

Rapidly Evolve

The process by which species undergo significant genetic changes in a relatively short period of time, often in response to environmental changes or pressures.