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On August 1, 2021, Turner Manufacturing lends cash and accepts a $17,000 note receivable that offers 2% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest
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On August 1, 2021, Turner Manufacturing lends cash and accepts a $17,000 note receivable that offers 2% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest in 2021

User Dadou
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1 Answer

2 votes

Answer:

850

Step-by-step explanation:

Turners manufactring accepts $17,000 as receivable

The interest is 2%

The year adjustment can be calculated as follows

= 17,000×0.02×5/2

= 17,000×0.02×2.5

= 850

User Jnt
by
4.8k points
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