M10. Assignment 10.1

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Proceeds from Notes Payable

On September 1, Bella Salon Company issued a 120-day note with a face amount of $38,400 to Hamlet Hair Products Company for merchandise inventory. Assume a 360-day year.

a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $

b. Determine the proceeds of the note, assuming the note is discounted at 8%. $