Martinez Manufacturing issued a $75,000, 90-day, discounted note to Central Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Martinez Manufacturing are: a) $73,500 b) $74,250 c) $76,500 d) $72,000

Martinez Manufacturing issued a $75,000, 90-day, discounted note to Central Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Martinez Manufacturing are: a) $73,500 b) $74,250 c) $76,500 d) $72,000

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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Question

I want to correct answer general accounting

Martinez Manufacturing issued a $75,000, 90-day, discounted note to
Central Bank. The discount rate is 8%. Assuming a 360-day year, the
cash proceeds to Martinez Manufacturing are:
a) $73,500
b) $74,250
c) $76,500
d) $72,000

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