Dillie Bar is holding a Note Receivable from Ice Cream Sandwich in the amount of $2,000....
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Dillie Bar is holding a Note Receivable from Ice Cream Sandwich in the amount of $2,000. The note, dated March 1, 2022, is a 90 day, 6% Note. Dillie needs cash 60 days (April 30) after the receipt of the note from Ice Cream Sandwich. Instead of waiting until the maturity date of the note, and collecting the principal and interest on the note from Ice Cream Sandwich, Dillie discounts the note at Íslandsbanki at 15% for the days remaining on the note. What are the proceeds that Dillie will receive from the bank upon discounting the note? Show each step of your calculation labelled appropriately. Dillie Bar is holding a Note Receivable from Ice Cream Sandwich in the amount of $2,000. The note, dated March 1, 2022, is a 90 day, 6% Note. Dillie needs cash 60 days (April 30) after the receipt of the note from Ice Cream Sandwich. Instead of waiting until the maturity date of the note, and collecting the principal and interest on the note from Ice Cream Sandwich, Dillie discounts the note at Íslandsbanki at 15% for the days remaining on the note. What are the proceeds that Dillie will receive from the bank upon discounting the note? Show each step of your calculation labelled appropriately.
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Step 1 Calculate the maturity date of the note The note is dated March 1 2022 and is a 90day note so ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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