On August 1, Batson Company issued a 60-day note with a face amount of $90,000 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $ b. Determine the proceeds of the note, assuming the note is discounted at 8%.
On August 1, Batson Company issued a 60-day note with a face amount of $90,000 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $ b. Determine the proceeds of the note, assuming the note is discounted at 8%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On August 1, Batson Company issued a 60-day note
with a face amount of $90,000 to Jergens Company
for merchandise inventory. (Assume a 360-day year
is used for interest computations.)
a. Determine the proceeds of the note, assuming
the note carries an interest rate of 8%.
b. Determine the proceeds of the note, assuming
the note is discounted at 8%.
A
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