On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest
On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15EB: Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for...
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On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest
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