Note Receivable
Same Day Surgery Center received a 120-day, 9% note for $72,000, 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.
Aug. 7
Answer-a)- The due date of the note = August 7.
Explanation- August 7 determined as follows:-
April = 21 days (30 days-9 days)
May = 31 days
June = 30 days
July = 31 days
August = 7 August
b)- The maturity value of the note = ($72000*9%)*120 days/360 days
= $2160
c)- Journal entry to record the receipt of the payment of the note at maturity-
| DATE | ACCOUNTS TITLES & EXPLANATION | DEBIT | CREDIT |
| $ | $ | ||
| Aug 7 | Cash | 74160 | |
| Notes Reveivable | 72000 | ||
| Interest Revenue | 2160 | ||
| (Being entry recorded ) |
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