Question

421m 9) A promissory note received from a customer in exchange for an account receivable is recorded by the payee as: A) An account receivable B) A cash equivalent. C) A note payable. D) A note receivable E) A short-term investment. 8AIATRT 10) The maturity date of a note receivable: A) Is the day the note was signed. B) Is the day of the credit sale. C) Is the day the note is due to be repaid. D) Is the date of the first payment. E) Is the last day of the month. 11) The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.) A) $450.00. B) $11.25. C) $112.50. D) $37.50. E) $1,800.00 odTt (2 Ovil ln 12) A 90-day note issued on April 10 matures on: A) July 12. B) July 10. C) July 11. D) July 9. E) July 13. 13) A company has net sales of $1,883,200 and average accounts receivable of $428,000. What is its accounts receivable turnover for the period? A) 0.34 B) 7.80 C) 78.60 D) 24.20 E) 4.40 ibo b d

Answer 1

9	Since the Payee has received the promissory note hence he will record it as "A Note Receivable"
	So Option D is answer
10	Maturity date of Note receivable is the day when note is repaid
	So Option C is answer
11	Interes accrued =$7,500*6%*90/360 =$112.50
	So Option C is answer
12	April - 20 days
	May - 31 days
	June - 30 days
	July - 9 days
	So July 9 is the answer
	So Option D is answer
13	Accounts receivable Turnover ratio =Net Sales / Average Accounts receivable
	Accounts receivable Turnover ratio =$1,883,200 / $428,000 =4.4 times
	So Option E is answer