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Husemann Co.'s assets include notes receivable from customers. During fiscal 2013, the amount of notes receivable averaged $138,750, and the interest rate of the notes averaged 4.8%.Required:
a. Calculate the amount of interest income earned by Husemann Co. during fiscal 2013 and show in the horizontal model or write a journal entry that accrues the interest income earned from the notes.
b. If the balance in the Interest Receivable account increased by $1,500 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year? Use the horizontal model, a T-account, or write the journal entry to show the collection of this amount.
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