Rae Corporation issued a 3-month, 15%, $50,000 note to Gamma Inc. on 10/1/12 in settlement
of its open account. Gamma has a year-ending 12/31, and prepares a quarterly financial
statement on 12/31/12.
Gamma would record an adjusting entry that would include a credit to interest revenue.
What is the dollar amount of the adjusting entry? interest revenue. What is the dollar amount of the adjusting entry?
