Question: When Moss Planters Corporation was contacted by Green s Garden Center
When Moss Planters Corporation was contacted by Green’s Garden Center asking for a time extension on its outstanding balance of $1,000, Moss Planters Corporation offered to convert the accounts receivable into a short-term note. Green’s agreed to the offer and, on June 1, signed a three-month promissory note at an interest rate of 4%. What is the principal amount of the note? What is the due date of the note? How much will Green’s Garden Center repay on the due date of the note?
Relevant QuestionsRoss Company had the following balances:Calculate the accounts receivable turnover ratio for 2010. On average, how many days does it take Ross Company to collect its accountsreceivable?Janie Johnson is having trouble with the bank reconciliation at January 31. Her reconciliation is as follows:Cash balance per books .......... $4,015Less deposits in transit .......... 590Add outstanding checks ...On October 1, 2009, ACME Athletic Equipment Company purchased athletic equipment on account for $10,500 from Sporting Goods Unlimited. On November 1, ACME renegotiated its debt by signing a three-month promissory note at an ...Extreme Sport, Inc., uses the allowance method to account for bad debts. During 2010, the company recorded $750,000 in credit sales. At the end of 2010 before adjustments, account balances were accounts receivable, $190,000, ...On May 31, 2010, Sharp Company had a cash balance in its general ledger of $6,675. The company’s bank statement from National Bank showed a May 31 balance of $8,240. The following facts have come to your attention:a. ...
Post your question