Charleston Co. issued a $60,000, 150-day, discounted note to Heritage Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Charleston Co. are: a) $58,000 b) $59,000 c) $57,000 d) $58,800

Charleston Co. issued a $60,000, 150-day, discounted note to Heritage Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Charleston Co. are: a) $58,000 b) $59,000 c) $57,000 d) $58,800

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 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Question

The cash proceeds to Charleston co.

Charleston Co. issued a $60,000, 150-day,
discounted note to Heritage Bank. The
discount rate is 8%. Assuming a 360-day
year, the cash proceeds to Charleston Co.
are:
a) $58,000
b) $59,000
c) $57,000
d) $58,800

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