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On December 1, a company accepted a $5,000, 4%, 90-day note. How much accrued interest will be recorded as an adjusting entry on December 31, the end of the accounting period? a. $166.67 b. $16.67 c. $1.
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On December 1, a company accepted a $5,000, 4%, 90-day note. How much accrued interest will be recorded as an adjusting entry on December 31, the end of the accounting period?

a. $166.67
b. $16.67
c. $1.67
d. $0.00; interest is not accrued at year-end

User Abronan
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1 Answer

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The accrued interest amount at the end of the accounting period is $16.67
User DFW
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