Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2021. The notes included:Note A: Dated 5/31/2021, principal of $120,000 and interest due 3/31/2022.Note B: Dated 7/1/2021, principal of $200,000 and interest at 8% annually, due on 4/1/2022.Frankenstein had accrued a total of $14,400 interest receivable from these notes in its 12/31/2021 balance sheet.Assume Frankenstein views the financing component of these sales to be significant. What amount of interest revenue would Frankenstein earn on these notes during 2022?
A. Less than $5,000.
B. Above $12,000.
C. Between $7,000 and 10,000.
D. None of these answer choices are correct.
Answer: D
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