Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $6,000, 10%, 90-day note sold after 30 days at 12%. 4. A $16,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do na round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, enter "0". Note 1 Note 2 Note 3 Note 4 Face Value of Note Interest to Maturity Maturity Value Discount Proceeds
Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A $10,000, 12%, 60-day note sold after 30 days at 14%. 3. A $6,000, 10%, 90-day note sold after 30 days at 12%. 4. A $16,000, 12%, 120-day note sold after 45 days at 15%. Required: Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do na round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero, enter "0". Note 1 Note 2 Note 3 Note 4 Face Value of Note Interest to Maturity Maturity Value Discount Proceeds
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 18E: Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable...
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![Computing the Proceeds from the Sale of Notes Receivable
Below are several customer notes receivable that were sold without recourse.
1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%.
2. A $10,000, 12%, 60-day note sold after 30 days at 14%.
3. A $6,000, 10%, 90-day note sold after 30 days at 12%.
4. A $16,000, 12%, 120-day note sold after 45 days at 15%.
Required:
Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not
round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero,
enter "0".
Note 1
Note 2
Note 3
Note 4
Face Value of Note
Interest to Maturity
Maturity Value
Discount
Proceeds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb70c4797-9104-47ad-8e68-22beb89abcaa%2Fb58d5b55-a4d9-485e-b5cd-1de4723d93ba%2Ffu4vilh_processed.png&w=3840&q=75)
Transcribed Image Text:Computing the Proceeds from the Sale of Notes Receivable
Below are several customer notes receivable that were sold without recourse.
1. An $8,000, 60-day, non-interest-bearing note sold after 15 days at 12%.
2. A $10,000, 12%, 60-day note sold after 30 days at 14%.
3. A $6,000, 10%, 90-day note sold after 30 days at 12%.
4. A $16,000, 12%, 120-day note sold after 45 days at 15%.
Required:
Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.) Do not
round intermediate calculations. When required, round your final answers to the nearest dollar. If an amount is zero,
enter "0".
Note 1
Note 2
Note 3
Note 4
Face Value of Note
Interest to Maturity
Maturity Value
Discount
Proceeds
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Introduction :
Maturity Value = Face Value of Note + Interest to Maturity
Proceeds = Maturity Value - Discount
All notes given in the question have different interest rate and discount rate .
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