Compute the proceeds of the note on these financial accounting question A $6,000, 90-day, 12 percent notereceivable in settlement of an account,dated July 1, is discounted at 12 percenton August 1. Compute the proceeds of thenote.

Step 1: Interest Assuming 360 days in a year Interest = Principal x Rate x TimeInterest = $6,000 x…

Answered: A $6,000, 90-day, 12 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 $6,000, 90-day, 12 percent note receivable in settlement of an account, dated July 1, is discounted at 12 percent on August 1. Compute the proceeds of the note.