20. TANNING SALON Kathy Bates needs to buy new tanning beds, and agrees to a 10% sim- ple discount note with a maturity value of $18,500 on July 30. The 120-day note is sold by the lender at a 12% discount rate on September 2. Find (a) the proceeds of the original note to Bates, (b) the discount period, (c) the discount, and (d) the proceeds at the sale of the note on September 2.

20. TANNING SALON Kathy Bates needs to buy new tanning beds, and agrees to a 10% sim- ple discount note with a maturity value of $18,500 on July 30. The 120-day note is sold by the lender at a 12% discount rate on September 2. Find (a) the proceeds of the original note to Bates, (b) the discount period, (c) the discount, and (d) the proceeds at the sale of the note on September 2.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EA: Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1,...

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