Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $4,000, 10%, 90-day note sold after 30 days at 12%. 4. A $12,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, ente "0".
Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $4,000, 10%, 90-day note sold after 30 days at 12%. 4. A $12,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, ente "0".
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Computing the Proceeds from the Sale of Notes Receivable
Below are several customer notes receivable that were sold without recourse.
1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%.
2. A $10,000, 12%, 60-day note sold after 30 days at 14%.
3. A $4,000, 10%, 90-day note sold after 30 days at 12%.
4. A $12,000, 12%, 120-day note sold after 45 days at 15%.
Required:
Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not
round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, enter
"0".
Note 1
Note 2
Note 3
Note 4
Face Value of Note
$4
Interest to Maturity
Maturity Value
Discount
Proceeds
%24
%24
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