Violet Enterprises issued its own USD 15,000, 60-day, non-interest-bearing note to a bank. If the note is discounted at 8 percent, the proceeds to Violet Enterprises are: a. USD 15,000 b. USD 13,700 c. USD 14,800 d. USD 13,500 e. None of the above

Violet Enterprises issued its own USD 15,000, 60-day, non-interest-bearing note to a bank. If the note is discounted at 8 percent, the proceeds to Violet Enterprises are: a. USD 15,000 b. USD 13,700 c. USD 14,800 d. USD 13,500 e. None of the above

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

Violet Enterprises issued its own USD 15,000, 60-day, non-interest-bearing
note to a bank. If the note is discounted at 8 percent, the proceeds to Violet
Enterprises are:
a. USD 15,000
b. USD 13,700
c. USD 14,800
d. USD 13,500
e. None of the above

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