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On August 1, Batson Company issued a 60-day note with a face amount of $49,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 8%. fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 8%.

User Vish
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Answer: See explanation

Step-by-step explanation:

a. Determine the proceeds of the note assuming the note carries an interest rate of 8%.

The proceeds of the note is the face value which is $49800.

b. Determine the proceeds of the note assuming the note is discounted at 8%.

Face amount: $49800

Less: Interest = $49800 × 8% × 60/360 = $664

Proceed of the note = $49136

User Feathercrown
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