Give correct calculation for proceeds of the note A $4,000, 90 day, 14 percent note receivablein settlement of an account, dated June 1, isdiscounted at 14 percent on July 1. Computethe proceeds of the note.

Step 1: Define Note receivableNote receivable is the promise to reimburse the amount taken by…

Answered: A $4,000, 90 day, 14 percent note…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 5P

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A $4,000, 90 day, 14 percent note receivable in settlement of an account, dated June 1, is discounted at 14 percent on July 1. Compute the proceeds of the note.