I want to correct answer Your company accepted a 120-day, 6% note for $189,000from Winter Company on account. On the maturity date,Winter Company still cannot pay, so you accept a new a60-day, 10% note for the full amount due (principal andinterest). How much cash will you receive if WinterCompany pays you in full on the maturity date of thesecond note?

Detailed explanation:When dealing with this type of financial dilemma, I always start by breaking it…

Answered: Your company accepted a 120-day, 6%…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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Akbar Associates issued 120-day note for $50,000 to a creditor on a account. The note was discounted at 6%. Assuming a 360-day year: a. What cash proceeds would Akbar receive from the note? b. How much would Akbar repay the creditor at the note's maturity? =
One of your customers is delinquent on his accounts payable balance. You've mutally agreed to a repayment schedule of $520 per month. You will charge .92 percetn per month interest on the overdue balance. If the current balance is $14740, how long will it take for teh account to be paid off?
On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with interest to be paid at maturity at 12%. On March 1, the entity discounted the note without recourse at a bank with a 15% discount. How much is the maturity value of the notes receivable?
Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.
On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico immediately discounted with recourse the note to a bank that offers a 10% discount rate. Calexico assumes the interest expense associated with this transaction. How much interest expense should Calexico Trading debit on its records? Calculate the total interest expense and NOT the net interest expense. Show ur solution
One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $640 per month. You will charge 1.04 percent per month interest on the overdue balance. If the current balance is $14,860, how long will it take for the account to be paid off? Note: Do not round intermediate calcula
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On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co. immediately discounted with recourse the note to a blank that offers a 10% discount rate. On maturity date, Harmony Trading dishonored the note. The bank charged processing fee of $8,000. How much is the total receivable of Calixo Co. from Harmony Trading? show solution
DE LA CRUZ Company received a 10%,180 day note from its customeron April 1, 2021. The note has a face value of P500,000. The companyendorsed the note, without recourse, to a bank on May 31, 2021. Thebank discounted the note at 12%.The debit to loss on discounting amounts at discount dateamounted to?
On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P80,000. How much is the total receivable of FDN Trading from ABC Co?

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