The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise. On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%. On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise. On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%. On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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The following note transactions occurred during the year for Towell Company:
On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise.
On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%.
On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account.
Calculate the amount of the necessary interest accrual for each note payable at December 31.
(Round to nearest whole dollar.)
| Lender | Interest accrual |
|---|---|
| Hyatt Company note | |
| Bank note | |
| Barr, Inc. note |
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