Question

TRN accepted a customer's $50,000 zero-interest-bearing six-month note payable in a sales transaction. The product sold normally sells for $48,000. If the sale was made on June 30, how much interest revenue from this transaction would be recorded for the year ending December 31?a. $0.b. $2,000.c. $4,000.d. $5,000.

Answer 1

b. $2,000

Step-by-step explanation:

The computation of the interest revenue is shown below:

= Note payable amount - Sales revenue

= $50,000 - $48,000

= $2,000

For computing the interest revenue, both the items which are mentioned in the question are relevant i.e note payment and the sales revenue. The remaining amount which is left is considered as an interest revenue.