Provide answer the accounting question Vaughn Manufacturing has a 60-day note that carries anannual interest rate of 9%. If the amount of the total interest onthe note is equal to $840, then what is the principal of thenote? (Use 360 days for calculation.)a. $10,500b. $56,000c. $60,480d. $26,880

Step 1: Define Interest-Bearing NoteNotes are negotiable instruments, just like cheques and bank…

Answered: Vaughn Manufacturing has a 60-day note…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Vaughn Manufacturing has a 60-day note that carries an annual interest rate of 9%. If the amount of the total interest on the note is equal to $840, then what is the principal of the note? (Use 360 days for calculation.) a. $10,500 b. $56,000 c. $60,480 d. $26,880