Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Assume 360 days in a year.

 

a.  Determine the due date of the note.   AUGUST 7
 

b.  Determine the maturity value of the note.
 

 

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

Assume a 360-day year. The maturity value is the amount that must be paid at the due date of the note.

Question Content Area

c.  Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

 

    Aug 7      Cash 

                      Note Receivable

                      Interest Revenue 

Answer rating: 100% (QA)

a To determine the due date of the note we add 120 days to the date of issuance April 9 ... View the full answer