Question: A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at

A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at 15%, the amount of interest revenue or expense to be recorded by the payee of the note on May 21 is a. $30 interest expense b. $30 interest revenue c. $170 interest revenue d. $170 interest expense ANS: DIF: Moderate OBJ: 09-App NAT: AACSB Analytic | AICPA FN-Measurement

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