Question
Proceeds from Notes Payable On September 1, Nova Salon Company issued a 90-day note with a face amount of $56,400 to Hotlocks Hair Products Company
Proceeds from Notes Payable
On September 1, Nova Salon Company issued a 90-day note with a face amount of $56,400 to Hotlocks 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 5%.
$
b.Determine the proceeds of the note, assuming the note is discounted at 5%.
$
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Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
