Question: A 60-day, 12% notes for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at

A 60-day, 12% notes for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at 15%, what is the amount of interest revenue or expense to be recorded by the payee of the note on May 21?

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Interest on Note 10000 12 60360 200 Discounti... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A 90-day, 12% note for $10,000 dated May 1 is received from a customer on account. The maturity value of the note is: a. $10,000 b. $10,300 c. $450 d. $9,550

How does the accrual of interest revenue or expense illustrate the matching concept?

Receiving cash from a customer on account will a. Increase total assets. b. Have no effect on total assets. c. Increase stockholders equity. d. Decrease liabilities.

A wash valley college ARIF Mm Level Three: Worksheet one Project One: The following transactions are taken from DOT Company which engaged in renting Construction materials for sub-contractors. The...

1.) The imputed rate of interest is a. the prevailing rate for a similar instrument of an issuer with a similar credit rating. b. a rate if interest that discounts the face (nominal) amount of the...

help! unadjusted and adjusted trial balances, red is wrong Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for April,...

Can someone help me with a post-closing trial balance and ratios? I have attached all the other work, I am checking the work that I have already done with your feedback. \f(a) (Continued) Cash...

Safari 7:48 AM Thu Apr 8 29% 19 BSA-3201-Q6 Q . .. Home Insert Draw Layout Review View Arial B I U A. E E A X To edit and save, sign in with a subscription. Sign in You are the new audit staff...

TRUE/FALSE QUESTIONS Notes Receivable and Accounts Receivable can also be called trade receivables. T/F Generally accepted accounting principles do not normally allow the use of the direct write-off...

1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity 2. A company purchased land by issuing a note payable. What...

Z Homework: Homework 9: Chapter 6 6.3-6.4 The overhead reach distances of adult females are normally distributed with a mean of 202 5 cm and a standard deviation of 8 cm. 11. Find the probability...

Post an explanation of how identity, privilege, power, and oppression influence professional practice based on Janet Helms's explanation in the Microtraining Associates video. Then explain the...

VWX Inc., has sales of $500,000, net income of $80,000, dividend payout of 50%, total assets of $700,000 and target debt-equity ratio of 1.5. If the company grows at its sustainable growth rate in...

Because a mother does not want to "spoil" her new born baby. She feeds and takes care of her baby's physical needs when she thinks the baby needs care, not when the baby cries to indicate their...

Application of Core Conflictual Relationship Theme (CCRT) Therapy to counselling immigrants and refugees Evidence understanding of applying a contemporary psychodynamic theory which can be modified...

Which of the following features of "There Will Come Soft Rains" does not reflect postmodernism? A . Its pastiche characteristics and blending of genres: elements of satire, speculative fiction,...

v tion 8 O out of 1 points Jerry has a business line of credit that has $254,000 borrowed on it and the interest rate is 6.1% compounded annually. He pays $2.200 monthly on it. What amount could be...

What is a content filter? Where is it placed in the network to gain the best result for the organization?

Sans Company began the 2010 accounting period with $18,000 cash, $60,000 inventory, $50,000 common stock, and $28,000 retained earnings. During the 2010 accounting period, Sans experienced the...

What is the difference between a cost and an expense?

Following is a bank reconciliation for Fez's Sandwich Shop for May 31, 2010. Because of limited funds, Fez's employed only one accountant who was responsible for receiving cash, recording receipts...

Sales of roof material, by quarter, for 2007 through 2013, by Carolina Home Construction Inc. are shown below (in $000). a. Determine the typical seasonal patterns for sales using the...

Listed below is the selling price for a share of Oracle Inc. stock at the close of the year for 1990 through 2012. a. Plot the data. b. Determine the least squares trend equation. Use both the actual...

The quarterly production of pine lumber, in millions of board feet, by Northwest Lumber for 2010 through 2014 is: a. Determine the typical seasonal pattern for the production data using the...