Question
On August 16, 2020, ABC writes a 90-day, 7.5%, $55,000 note to settle an open account with XYZ. Assuming that ABC pays the note in
On August 16, 2020, ABC writes a 90-day, 7.5%, $55,000 note to settle an open account with XYZ. Assuming that ABC pays the note in full on its due date and a 360 day year is used to calculate interest, how much cash will XYZ record on its statement of financial position, and on what date will the cash be received?
O $1.031.25 on Nov. 15. 2020.
O $10.312.5 on Oct. 15. 2020.
O $510.312.5 on Nov. 15. 2020.
O $1.031.25 on Oct. 15. 2020.
show calculations please
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Accounting and Financial Analysis in the Hospitality Industry
Authors: Johnathan Hales
1st edition
132458667, 978-0132458665
