Jenkins Corporation issued its own USD 25,000, 90-day, non-interest-bearing note to a bank. If the note is discounted at 8 percent, the proceeds to Jenkins are: a. USD 25,000 b. USD 24,500 c. USD 25,500 d. USD 24,000

Jenkins Corporation issued its own USD 25,000, 90-day, non-interest-bearing note to a bank. If the note is discounted at 8 percent, the proceeds to Jenkins are: a. USD 25,000 b. USD 24,500 c. USD 25,500 d. USD 24,000

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

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Question

I need help with this solution and general accounting

Jenkins Corporation issued its own USD 25,000, 90-day, non-interest-bearing
note to a bank. If the note is discounted at 8 percent, the proceeds to Jenkins
are:
a. USD 25,000
b. USD 24,500
c. USD 25,500
d. USD 24,000

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