Malloy Company issued its own $10,000, 90-day, non-interest- bearing note to a bank. The only payment Malloy will ever make to the bank will be for $10,000 at the maturity date of the loan as the bank discounts the note at 10%. The proceeds to Malloy are a. $10,000 b. $9,000 c. $9,750 d. $10,250 e. None of the above

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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Malloy Company issued its own $10,000, 90-day, non-interest-
bearing note to a bank. The only payment Malloy will ever make
to the bank will be for $10,000 at the maturity date of the loan
as the bank discounts the note at 10%. The proceeds to Malloy
are
a. $10,000
b. $9,000
c. $9,750
d. $10,250
e. None of the above
Transcribed Image Text:Malloy Company issued its own $10,000, 90-day, non-interest- bearing note to a bank. The only payment Malloy will ever make to the bank will be for $10,000 at the maturity date of the loan as the bank discounts the note at 10%. The proceeds to Malloy are a. $10,000 b. $9,000 c. $9,750 d. $10,250 e. None of the above
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