Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: Date of Note Principal Interest Rate (%) Term Aug 5 $6,000 9 120 days May 10 $16,800 7 90 days October 20 $24,000 9 45 days July 6 $4,500 11 60 days September 15 $9,000 8 75 days
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
E8-5A
Maturity Dates of Notes Receivable
Determine the maturity date and compute the interest for each of the following notes:
Date of Note Principal Interest Rate (%) Term
Aug 5 $6,000 9 120 days
May 10 $16,800 7 90 days
October 20 $24,000 9 45 days
July 6 $4,500 11 60 days
September 15 $9,000 8 75 days
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
