FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and principal of P850,000 on October 1, 2021. How much should be recorded as interest expense for the year ended December 31, 2021?

FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and principal of P850,000 on October 1, 2021. How much should be recorded as interest expense for the year ended December 31, 2021?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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Question

FDNACCT Co. purchased merchandise and issued a twelve-month
promissory note with 8% interest and principal of P850,000 on
October 1, 2021. How much should be recorded as interest
expense for the year ended December 31, 2021?

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