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?
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