Question: TRUE X FALSE Red Co. issued an interest-bearing note payable to Green Co. on July 1. The note had a $10,000 principal amount, a six-month

TRUE X FALSE

Red Co. issued an interest-bearing note payable to Green Co. on July 1. The note had a $10,000 principal amount, a six-month term, and an annual interest rate of 3 percent. The amount of interest expense Red Co. will report in its financial statements will be $150.

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