On Merf’s April 30, 2006 balance sheet a note receivable was reported as a noncurrent asset and its accrued interest for eight months was reported as a current asset. Which of the following terms would fit Merf’s note receivable?
- Both principal and interest amounts are payable on August 31, 2006, and August 31, 2007.
- Principal and interest are due December 31, 2006.
- Both principal and interest amounts are payable on December 31, 2006, and December 31, 2007.
- Principal is due August 31, 2007, and interest is due August 31, 2006, and August 31, 2007.