Maynard Mills received a 60-day, 5% note for $10,000 on April 5
. Which of the following
statements is true?
Maynard Mills should record a total receivable due of $10,500 on April 5
The maturity value of this note is $10,000.
The principal of the note plus interest is due on June 4
Maynard Mills will receive $10,000 plus interest of $500 at maturity.
Foti Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with
Bartelt Co. The entry to record this transaction is as follows:
Assuming a 2/10, n/30 term, which of the following best explains what is meant by a journal
entry that reads Cash $980; Sales Discounts $20; Accounts Receivable—Wilson Company $1,000.