Verilux Company sold merchandise to Flight Corp on November 1, 2016, for $10,000 . Verilux accepted a promissory note from Flight Corp for $10,000 . The note has a term of 5 months and a stated interest rate of 7%. Verilux's accounting period ends on December 31, 2016 . What amount should Verilux recognize as interest revenue on the maturity date of the note?
a. $ -0-
b. $ 175.00
c. $ 291.67
d. $ 420.00
b
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Answer the following statement true (T) or false (F)
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Youngblood Company borrowed $100,000 on a one-year, 10% note on October 1, 2012, with interest and principal to be paid at maturity. How much interest should Stone Company report on its income statement for the year ending December 31, 2013?
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A buyer's material breach gives the seller the right to refuse to deliver the goods
a. True b. False Indicate whether the statement is true or false