A 60-day, 9% discounted note for $26,400 is received from a customer on account on May 1. What are the proceeds from the...

Question

Question

A 60-day, 9% discounted note for $26,400 is received from a customer on account on May 1. What are the proceeds from the note on May 1?

Select the correct answer.

$396

$26,400

$26,004

$26,796

Answer 1

Answer #1

The correct answer is $26,004.

Supporting calculations:

Proceeds from the note = (Note value - Discount on note)

= ($26,400 - [$26,400*9/100*60 days/360 days]

= $26,400 - $396

= $26,004

Therefore, the proceeds from the note on May is $26,004.

Answer 2

Similar Homework Help Questions

SA 90-day, 12% note for S 10,000, dated May 1, is received from a customer on...

SA 90-day, 12% note for S 10,000, dated May 1, is received from a customer on account. The maturity value of the note is a. $10,000 $10,300 c. $450 d. $9,550 6.A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at 15%, the proceeds are a. $170 b. $9,830 c. $10,000 d. $10,030 7.A 60-day, 12% note received from a customer for $50,000, dated May...
A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account....

A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. Assuming a 360-day year, the maturity value of the note is a.$10,000. b.$10,200. c.$9,980. d.$1,200.
Proceeds from Notes Payable On September 1, Nova Salon Company issued a 60-day note with a...

Proceeds from Notes Payable On September 1, Nova Salon Company issued a 60-day note with a face amount of $38,400 to Motlocks 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 10% b. Determine the proceeds of the note, assuming the note is discounted at 10%

v On June 11, Nathan, Inc. accepted a $8,000, 7%, 60-day note from a customer. On...

v On June 11, Nathan, Inc. accepted a $8,000, 7%, 60-day note from a customer. On June 26, the company discounted the note at the bank at 10%. The proceeds amounted to $8,093.33 $8,000.00 $7,992.16 $8,101.17
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.

Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account. Required (a) Determine the due date of the note. (b) Determine the maturity value of the note. (c) Journalize the entry to record the receipt of the payment of the note at maturity.
Guzman Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine t...

Guzman Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

ID: A 9. A 60-day, 10% note for $9,000, dated the note is We note for...

ID: A 9. A 60-day, 10% note for $9,000, dated the note is We note for $9.000, dated April 15, is received from a customer on account. The face value of a. $9.850 b. $7,200 c. $9.900 $9,000 A 60-day, 12% note for $10.000 dated May is received from a customer on account. The maturity value of the note is a. $10,000 b. S10,200 c. $200 d. $9,800 10. 11. The number of days' sales in receivables a. is an...
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account.

PE 9-5B Note receivablePrefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account. a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity.
A business issued a 60-day note for $87,000 to a creditor on account. The note was discounted at 7%.

A business issued a 60-day note for $87,000 to a creditor on account. The note was discounted at 7%. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to nearest whole dollar.Journal a. Journalize the entries to record the issuance of the note on March 1. Refer to the Chart of Accounts...

Entries for Discounted Note Payable A business issued a 60-day note for $63,000 to a creditor...

Entries for Discounted Note Payable A business issued a 60-day note for $63,000 to a creditor on account. The note was discounted at 9%. Assume a 360-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place. a. b. Journalize the entry to record the payment of the note at maturity. b.