Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are: a) $49,000 b) $49,750 c) $51,000 d) $47,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Chang Co. issued a $50,000, 120-day, discounted note
to Guarantee Bank. The discount rate is 6%. Assuming
a 360-day year, the cash proceeds to Chang Co. are:
a) $49,000
b) $49,750
c) $51,000
d) $47,000
Transcribed Image Text:Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are: a) $49,000 b) $49,750 c) $51,000 d) $47,000
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