Question

1. On November 1, Entity H lent its supplier $60,000 on a one-year, 12% note receivable with interest and principle due at maturity.   What is the maturity value of the note?

		$67,200
		$66,000
		$60,000
		$61,200

2.

Entity A made a credit sale of merchandise to a customer of $1,200 on October 15, terms 2/10, net/30. The customer returned $200 of the merchandise on October 18. The customer paid for the remaining merchandise in full on October 27.   What amount did Entity A receive from the customer as payment?

		$1,000
		$976
		$980
		$1,200

Answer 1

Question 1

Correct answer--------------$67,200

Working

Note receivable value	$ 60,000
Interest on note	$    7,200
Maturity value	$ 67,200

.

Question 2

Correct answer--------------$1000

Working

Gross value of purchase	$     1,200.00
Less: Returns	$         200.00
Net Purchase	$     1,000.00
Less: Discount availed	$                  -
Net cash Received	$     1,000.00

Payment is done after discount period of 10 days hence no discount will be given.