Question

Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $45,700, and the interest rate of the notes averaged 9.5%. b-1. If the balance in the Interest Receivable account increased by $2,410 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year

Answer 1

Interest receivable collected = $1931.50

Step-by-step explanation:

Given:

Amount of notes receivable = $45,700

Interest rate = 9.5%

Interest Receivable account increased = $2,410

Find:

Interest receivable collected

Computation:

Interest receivable collected = [Amount of notes receivable × Interest rate] - Interest Receivable account increased

Interest receivable collected = [45,700 × 9.5%] - 2,410

Interest receivable collected = $1931.50