Question

On October 1, 2021, Oberley Corporation loans one of its employees $30,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022. x Answer Is complete but not entirely correct. Year 2021 Interest Revenue $ 60,000 $ 2,925 2022 < Prev 3 of 7 Next > 19​

Answer 1

In order to calculate interest receivable and interest revenue for notes receivable, you can multiply the interest rate by the amount of notes receivable and then divide by 12 to capture the monthly rate.