Entries for Notes Receivable

Autumn Designs & Decorators issued a $120-$day, $5\%$ note for $$93,000,$ dated April $13$ to Zebra Furniture Company on account. Assume a $360-$day year when calculating interest.

a$.$ Determine the due date of the note.

b$.$ Determine the maturity value of the note.

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The due date is the date the note is to be paid.

Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a $360-$day year. The maturity value is the amount that must be paid at the due date of the note.

At the due date, the company records the receipt of payment on the note.

c$1.$ Journalize the entry to record the receipt of the note by Zebra Furnfture. If an amount box does not require an entry, leave it blank.

Accounts Receivable$-$Autumn Designs and Decorators gradx

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