Answer:
B. $16.67
Explanation:
The computation of the accrued interest expense is shown below:
= Notes receivable or Principal × rate of interest × number of days ÷ (total number of days in a year)
= $5,000 × 4% × (30 days ÷ 360 days)
= $16.67
We assume there are 360 days in a year
And, the 30 days is calculated from December 1 to December 31
This is the answer and same is not mentioned in the given options
