Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Assume 360 days in a year.

 

a.  Determine the due date of the note.   AUGUST 7
 

b.  Determine the maturity value of the note.
 

 

The due date is the date the note is to be paid.

Assume a 360-day year. The maturity value is the amount that must be paid at the due date of the note.

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c.  Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

 

    Aug 7      Cash 

                      Note Receivable

                      Interest Revenue