Interest on a loan assumed was collected in arrears. The seller paid the July payment. The closing is scheduled for July 15. The seller is debited

In this scenario, the key factor to consider is the timing of the loan interest payment in relation to the closing date. When interest is collected in arrears, it means that the interest covers the period prior to payment. Since the seller is responsible for the July payment, they will have to pay interest for the portion of the month they still occupy the property, up until the closing date.

Given that the closing is set for July 15, the seller will be debited for interest covering the first 15 days of July. This is because they are responsible for the interest accrued from the start of July until the closing date, which encompasses only half of the month rather than a full 30 days. The correct calculation demonstrates that the seller needs to account for the period they owned the property up to the day of closing, leading to the conclusion that the appropriate amount to be debited is for 15 days of interest.