Maynard mills received a 60 day 5 note for 10000 on

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Anderson's Business Law and the Legal Environment, Comprehensive Volume
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Chapter 29 / Exercise 7
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19. Maynard Mills received a 60-day, 5% note for $10,000 on April 5 th . Which of the following statements is true? a. Maynard Mills should record a total receivable due of $10,500 on April 5 th . b. The maturity value of this note is $10,000. c. The principal of the note plus interest is due on June 4 th d. Maynard Mills will receive $10,000 plus interest of $500 at maturity.
20. 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:
21. 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.
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Anderson's Business Law and the Legal Environment, Comprehensive Volume
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Chapter 29 / Exercise 7
Anderson's Business Law and the Legal Environment, Comprehensive Volume
Jennings/Twomey
Expert Verified
d. A 2% interest charge was charged by Wilson Company to a customer on a purchase of $1,000 because the customer paid after 30 days. 22. Assuming a 36% annual rate of interest on a company-issued credit card, which of the following best explains what is meant by a journal entry that reads: Accounts Receivable $60; Interest Revenue $60.
23. ____ are said to be at “arm’s length,” while ____ are to be reported separately in the financial statements. a. Cash sales to customers; credit sales to customers b. Loans to company officers; credit sales to customers c. Credit sales to customers; cash sales to customers d. Credit sales to customers; loans to company officers LO2: Describe how companies value accounts receivable and record their disposition
24. Unlike the allowance method, the direct write-off method

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