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.

Question

Business

Alden Pitts

25 October, 15:23

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.

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Answers (1)

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Daniel Pena · Answer 1

b. $2,000

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.