Icebreaker Company receives a 120-day, 6% note for $40,000, dated May 14, in settlement of a $40,000

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Icebreaker Company receives a 120-day, 6% note for $40,000, dated May 14, in settlement of a $40,000 account that is past due.

a. Determine the due date of the note.

b. Determine the maturity value of the note.

c. Prepare the journal entries to record the (1) receipt of the note and (2) collection at maturity.

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Financial And Managerial Accounting

ISBN: 9781337902663

15th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

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Question Posted: Feb 06, 2024 01:37 PM

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Icebreaker Company receives a 120-day, 6% note for $40,000, dated May 14, in settlement of a $40,000

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a The due date of the note is September 11 determined as follows MAY 1431 17 days May 14 JUNE 1...View the full answer

Financial And Managerial Accounting

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