Rayan Ltd. accepts a 8-month, $10,000 note with interest at 10% on June 1. Rayan Ltd.'s year end is August 31. When the note is honoured how much interest revenue will be recorded?

a.$250

b.$417 3 months at year end Aug 31^st. (10,000 * 10%/12 *3)

c.$667

d.$1,000

e.none of the above

Rayan Ltd. accepts an 8-month, $10,000 note with interest at 10% on June 1. Rayan Ltd.'s year end is August 31. What is the amount that the Allowance for Doubtful Notes will be debited by if the note is dishonoured and collection is not expected?

a.$10,000

b.$10,250

c.$10,417

d.$10,667

e.none of the above