Question

If a seller collected rent of $900 from the buyer, payable in advance, on August 1, which statement is TRUE at the closing on August 15, if the closing date is an expense to the seller? (Use a 30-day month)

Answer 1

The seller will owes the buyer the amount of $450

Step-by-step explanation:

Based on the information given, in a situation where a seller collected the amount of $900 as rent from the buyer which will be payable in advance which means that in a situation where the closing date is an expense to the seller the seller will owes the buyer the amount of $450 calculated as :

Collected amount $900/30 day month

=$30

And since we were told that the closing date is August 15 (15 days) which means that we have to multiply the amount of $30 by the numbers of days which is 15 days in order for us to know how much the seller will owes the buyer calculated as

$30x15 days

=$450

Therefore the seller will owes the buyer the amount of $450