On January 1, Southwest Company accepted a one-year note for $60,000 at 8% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company recorded the dishonor. The amount of the debit recorded on December 31 is ________.

A) $55,200
B) $4800
C) $60,000
D) $64,800


D) $64,800
Explanation: $60,000 × 8% = $4800
Total amount = $60,000 + $4800 = $64,800.

Business

You might also like to view...

Likert scale analysis is generally conducted by appropriately summing the item scores

Indicate whether the statement is true or false

Business

Summarize the contentions of supporters and opponents of comparable worth?

What will be an ideal response?

Business

______ credibility refers to how the audience perceives you after your speech.

What will be an ideal response?

Business

Deeply discounted bond that pays no coupon interest is a ________

A) junk bond B) floating rate bond C) zero coupon bond D) subordinated debenture

Business