Question
On June 1, 20X6, Windows, Screens & Blinds Ltd. exchanged an $18,500 account receivable from Two-Tone Painters for a $20,000, 18-month, interest-free note receivable. The
On June 1, 20X6, Windows, Screens & Blinds Ltd. exchanged an $18,500 account receivable from Two-Tone Painters for a $20,000, 18-month, interest-free note receivable. The market rate of interest on similar notes is 7%. The full amount of the note is due at maturity on November 30, 20X7.
What is the present value of the note receivable at June 1, 20X6?
a) $18,070 b) $18,500 c) $18,692 d) $20,000
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
