How much should be in the firms interest payable account
Martin & Associates borrowed $5,000 on April 1, 2013 at 8% interest with both principal and interest due on March 31, 2014. How much should be in the firm's interest payable account at December 31, 2013?
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Basically, we have FOB shipping point and FOB destination. With FOB shipping point, the ownership (title) passes to the buyer as soon as the merchandise leaves the seller's dock (i.e. in transit).
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Martin & Associates borrowed $5,000 on April 1, 2013 at 8% interest with both principal and interest due on March 31, 2014.
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