Question8 1 pts At December 31 year-end, Crab Company has a $12,000 note receiva

Question

Question8 1 pts At December 31 year-end, Crab Company has a $12,000 note receivable from a customer. Interest of 7% has accrued for 9 months on the note, what will Crab's financial statements report for this situation? O The balance sheet will only report the note receivable of $12.000 O The balance sheet will report the note receivable of $12.000 and interest receivable of $630. O The income statement will report a note receivable of $12.000. Nohing vile reported on the balance shet or income statement until the customer ed on the balance sheet or income statement until the customer pays.

Explanation / Answer

B. The balance sheet will report the note receivable of $12,000 and interest receivable of $630.

Note receivable = $12,000

Interest receivable = $12,000 × 7% × 9/12 = $630

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.