Question

# Note Receivable Same Day Surgery Center received a 120-day, 9% note for \$24,000, dated April 9,...

Note Receivable

Same Day Surgery Center received a 120-day, 9% note for \$24,000, dated April 9, from a customer on account. Assume 360 days in a year.

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. If an amount box does not require an entry, leave it blank.

a.

 Month Days April 21 May 31 June 30 July 31 August 7 Total 120 days

The due date of the note. = 7 August

b.

Interest receivable on note at maturity = Par value of note x Interest rate x 120/360

= 24,000 x 9% x 120/360

= \$720

Maturity value of note = Par value of note + Interest on note

= 24,000+720

= \$24,720

c.

 Genera Journal Debit Credit Cash \$24,720 Interest revenue \$720 Note receivable \$24,000

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Thanks!!!

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