ACCOUTING PRIN SET LL INCLUSIVE
ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Chapter 9, Problem 16Q
To determine

Promissory note:

Notes receivable can be defined as a written promissory note. It can also be referred to as a note required for collection of interest and is collected within a time period of 60 to 90 days. It is a result of sales transactions.

Promissory note gives the holder a stronger legal claim as compared to accounts receivable. It can easily be sold to another party and can be transferred to another party through endorsement, since they are negotiable instruments. A promissory note holder is also liable to earn interest.

To compute: The missing amounts for the given promissory notes.

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Barbara Jones is preparing the 2022 budget for one of Current Designs' rotomoulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022. Quarter 1 2,800 kayaks Quarter 2 3,600 kayaks Quarter 3 2,400 kayaks Quarter 4 2,400 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 3,600 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 700 rotomoulded kayaks. Production of each kayak requires 56 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is 20,000…
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