PE 9-5A Note receivable

Vista Supply Company received a 30-day, 4% note for $90,000, dated September 8 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

Answer:
a. The due date for the note is October 8, determined as follows:   September........................................................ 22 days (30 – 8)  
October............................................................. 8 days    
Total.............................................................. 30 days

b.  $90,300 [$90,000 + ($90,000 × 4% × 30/360)]

c.
Oct. 8
Cash................................................................. 90,300    
                       Notes Receivable.......................................  90,000    
                       Interest Revenue........................................  300

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