Parker Company issued its own USD 15,000, 60-day, non-interest- bearing note to a bank. If the note is discounted at 12 percent, the proceeds to Parker are: a. USD 15,000 b. USD 14,700 c. USD 13,200 d. USD 15,300

Parker Company issued its own USD 15,000, 60-day, non-interest- bearing note to a bank. If the note is discounted at 12 percent, the proceeds to Parker are: a. USD 15,000 b. USD 14,700 c. USD 13,200 d. USD 15,300

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

General accounting question

Parker Company issued its own USD 15,000, 60-day, non-interest-
bearing note to a bank. If the note is discounted at 12 percent, the
proceeds to Parker are:
a. USD 15,000
b. USD 14,700
c. USD 13,200
d. USD 15,300

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