Business, 14.02.2020 01:48 Fatimaneedhelp

On August 15, 2005, Benet Co. sold goods for which it received a note bearing the market rate of

interest on that date. The four-month note was dated July 15, 2005.

Note that the principal, together with all interest, is due November 15, 2005.

When the note was recorded on August 15, which of the following accounts increased?

A. Unearned discount.

B. Interest receivable.

C. Prepaid interest.

D. Interest revenue.

Answers: 1

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On August 15, 2005, Benet Co. sold goods for which it received a note bearing the market rate of

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