At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note. What will Crain's financial statements report for this situation?
a.) The balance sheet will report the note receivable of $8,400.
b.) The balance sheet will report the note receivable of $8,400 and interest receivable of $700.
c.) Nothing because the business has not received the cash yet.
d.) The income statement will report a note receivable of $8,400.
Ans: b.) The balance sheet will report the note receivable of $8,400 and interest receivable of $700.
Business
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