Question

21&23 please

D) asset valuation. el. The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is A) S50,000. B) $50,750. C) $54,500 D) $59,000. 22. Which one of the following is not a primary problem associated with accounts receivable? A) Depreciating accounts receivable B) Recognizing accounts receivable C) Valuing accounts receivable D) Disposing of accounts receivable 23. A 60-day note receivable dated July 13 has a maturity date of A) September 12. B) September 11. C) September 10. D) September 13. 24. Three accounting issues associated with accounts receivable are A) depreciating, returns, and valuing. B) depreciating, valuing, and collecting. recognizing, valuing, and disposing

Answer 1

21)

Face Value of Notes receivable = $50,000

Interest Rate = 9%

Period to maturity = 60 days

Maturity Value = Face Value of notes receivable + Interest for 60 days

= $50,000 + ($50,000*9%*60/360)

= $50,000 + $750

= $50,750

Maturity Value = $50,750

The correct option is B) $50,750

Note - Number of days in a year is taken 360 days

23)

Calculation of maturity date

If the term of notes receivable is mentioned in days, we start counting beginning with the day after the note begins, which would be July 14

Number of days in July = 31 – 13 = 18 days

Number of days in August = 31 days

Number of days in Sept = 11 days

Total number of days = 60 days

The maturity date would be September 11

The correct option is B) September 11

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