At December 31 year-end, Cushion Corporation has a $9,000 note receivable from a customer. Interest of 4% has accrued for 10 months on the note. What will Cushion's financial statements report for this situation at December 31?

The financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300

Explanation:

Calculation for what Cushion's financial statements report for this situation at December 31

Based on the information given we were told that the Corporation has the amount of $9,000 as note receivable from a customer with an Interest of 4% which has accrued for 10 months on the note which mean that the financial statements will report will report the note receivable of the amount of $9,000 and interest receivable of the amount of $300 at December 31 which was calculated as :

Interest receivable =$9,000×0.04×10/12

Interest receivable =$300

Therefore the financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300

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