53) A promissory note received from a customer in exchange for an account receiv
ID: 2559529 • Letter: 5
Question
53) A promissory note received from a customer in exchange for an account receivable is recorded by the payee as A) A note receivable B) An account receivable Q A short-term investment. D) A cash equivalent E) A note payable 54)Theinterest accrued on S7.500 at 6% for 90 days is: (Use 360 days a year.) A) $450 00. B) $11.25 C) $1,800.00 D) S37.50 E) S112.50. 55) A 90-day note issued on April 10 matures on A) July 11. B) July 13. CJuly 10 D) July 9. E)July 12 by signing a 180-day promissory note at 9%. The matunty value of the note 56) A company borrowed $10,000 is: (Use 360 days a year.) A)SI 1.800 B)$10,000 C)$10.300 D)S10,075 E)$10.450 57) Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is: A) 2.000 Allowance for Doubtful Accounts 2,00 ad debts expense 2.00 ccounts Receivable-A. Hopkins Allowance for Doubtful Accounts 2,000 C) 2,000 Accounts Receivable-A. Hopkins ad debts expense ash Accounts Receivable-A. Hopkins 2,00 2,000 2,000 2,00 Allowance for Doubtful Accounts Accounts Receivable-A. Hopkins 2,000Explanation / Answer
Answer 53.
A promissory note provided to the supplier in exchange of an account payable is notes payable.
Answer 54.
Principal Amount = $7,500
Interest Rate = 6%
Accrued Interest = $7,500 * 6% * 90/360
Accrued Interest = $112.50
Answer 55.
Days to Maturity = 90 days
Apr. 10 - Apr. 30 = 20 days
May 1 - May 31 = 31 days
June 1 - June 30 = 30 days
July 1 - July 9 = 9 days
So, Maturity is July 9
Answer 56.
Value of Note = $10,000
Interest Rate = 9%
Days to Maturity = 180
Interest due till maturity = $10,000 * 9% * 180/360
Interest due till maturity = $450
Maturity Value = $10,000 + $450
Maturity Value = $10,450
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