X-mart uses the perpetual inventory system to account for its merchandise. on may 1, it sold $1,400 of merchandise on credit with terms of 1/10,n/40. demonstrate the required journal entry to record the receipt of payment on may 25 by selecting all of the correct actions below

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?