Final answer:
The proceeds from the $50,000 60-day non-interest bearing note receivable, discounted at a rate of 12%, is $49,019.61.
Step-by-step explanation:
The question is asking to calculate the proceeds of a non-interest bearing note receivable that is discounted at a given rate. The formula used for calculating the proceeds is the present value of the future amount, which is calculated using the discount rate over the period until maturity.
In this scenario, Jessica accepts a $50,000 60-day note receivable. The discount rate is 12% annually. To find the proceeds, we need to discount the note's face value back to its present value.
Proceeds = Face Value / (1 + (Discount Rate x (Days to Maturity / 360)))
Plugging in the values:
Proceeds = $50,000 / (1 + (0.12 x (60 / 360)))
Proceeds = $50,000 / (1 + 0.02)
Proceeds = $50,000 / 1.02
Proceeds = $49,019.61 (rounded to two decimal places)
Therefore, the amount of proceeds of the note used to record the sale is $49,019.61.