Question 27 (Mandatory) (3 points)

A company issues a 60-day, 6 percent, $100,000 note to a customer, to replace the customers $100,000 outstanding Accounts Receivable.

______________________________

Assuming the note remaining outstanding for all 60 days, what is the total interest which will accrue over the life of this note?

Question 27 options:

	$6,000
	$1,500
	$1,000
	$500

Question 28 (Mandatory) (3 points)

A company issues a 60-day, 6 percent, $100,000 note to a customer, to replace the customers $100,000 outstanding Accounts Receivable.

______________________________

What is the maturity value of the note?

Question 28 options:

	$101,500
	$100,000
	$106,000
	$101,000

Question 29 (Mandatory) (3 points)

A company issues a 60-day, 6 percent, $100,000 note to a customer, to replace the customers $100,000 outstanding Accounts Receivable.

______________________________

Provide the journal entry upon issuance of the note.

Question 29 options:

	Dr. Note Receivable $101,000 Cr. Accounts Receivable $101,000
	Dr. Note Receivable $100,000 Cr. Cash $100,000
	Dr. Note Receivable $106,000 Cr. Accounts Receivable $106,000
	Dr. Note Receivable $100,000 Cr. Accounts Receivable $100,000

Question 30 (Mandatory) (3 points)

A company issues a 60-day, 6 percent, $100,000 note to a customer, to replace the customers $100,000 outstanding Accounts Receivable.

______________________________

Assume the company does not close its books during the life of the note. Provide the journal entry at receipt of the maturity value.

Question 30 options:

	Dr. Cash $100,000 Cr. Note Receivable $100,000
	Dr. Cash $101,000 Cr. Note Receivable $100,000 Cr. Interest Revenue $1,000
	Dr. Cash $106,000 Cr. Note Receivable $100,000 Cr. Interest Revenue $6,000
	Dr. Cash $101,000 Cr. Note Receivable $101,000