Rosewood Company made a loan of $9,800 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report during the years ending December 31, Year 1 and Year 2, respectively, would be:a. $588 and $0b. $0 and $588c. $441 and $147d. $147 and $441

c. $441 and $147

Explanation:

The total interest revenue on notes receivable is,

Interest revenue = 9800 * 6% = $588

The note is for one year however it is issued on 1 April. If we prepare the adjusting entry on 31 December, at 31 December of Year 1, we will record the interest revenue for the period from April to December Year 1.

The Interest revenue reported on 31 December Year 1 will be,

Thus, the remaining will be reported on Year 2's statements because it pertains to the period from January to March Year 2.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

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