Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed belowj On November 1, 2017, Salem Corporation sold land priced at $340,000 in exchange for a 3%, six-month note Part 3 of 3 receivable 3.33 points On May 1, 2018 (maturity date), the note is collected in full by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes which of the following in its income statement for 2018 with regard to this note? Print Multiple Choice $5,100 interest revenue $3,400 interest revenue $345,100 sales revenue.

Explanation / Answer

Salem recognizes the following in its income statement for 2018 with regard to this note

340000 * 3% * 4/12

= $ 3400 interest revenue

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