A company signs a note payable for $3,500 at 9% for 45 days. How much interest (

Question

A company signs a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the company owe using a 360 - day year? L & L Construction had sales on account of $28,500 which were subject to state sales tax of 9%. The entry to record the sales would be to: debit Accounts receivable, $31,065; credit Sales revenue, $28,500; credit Sales tax payable, $2,565. debit Accounts receivable, $31,065; credit Sale revenue, $31,065. debit Accounts receivable, $28,500; credit Sales revenue, $28,500. debit Accounts receivable, $28,500; debit Sales tax payable, $2,565; credit Sales revenue, $31,065.

Explanation / Answer

Solution-3

D. 39.38

Calculation-

$3,500*9%*45 / 360 = $39.38

Solution-4

A. Debit Accounts Receivable $31065;credit Sales revenue $28500;credit Sales Tax Payable $2565

Calculation-

$28,500*9% = $2,565*

Date Account Titles & Explanation Debit Credit 1. Accounts receivable $31,065 Sales Revenue $28,500 Sales tax payable $2,565*

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