Ron Prentice bought goods from Shelly Katz. On April 8, Shelly gave Ron a time extension on his bill by accepting a $2,520, 10%, 190-day note. On July 14, Shelly discounted the note at Roseville Bank at 10%. (Use Days in a year table.)What proceeds does Shelly Katz receive?Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.Proceeds received

Maturity Value of Note = $2,520

Answered: Ron Prentice bought goods from Shelly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On May 12, Scott Rinse accepted an $12,000, 12%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 11%. (Use Days in a year table.) What proceeds does Scott receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.
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Ron Prentice bought goods from Shelly Katz. On April 8, Shelly gave Ron a time extension on his bill by accepting a $2,520, 10%, 190 day note. On July 14, Shelly discounted the note at Roseville Bank at 10%. (Use Days in a year table.)