Max Corp. sold goods for $36,000 on July 17, 2014, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate.
Required:
a. Compute the proceeds.
b. If the maker dishonored the note at maturity, prepare an entry or entries) for Max Corp. assuming $75 of bank protest fees.

Question

Quizplus · Accepted Answer

The Answer of Max Corp. sold goods for $36,000 on July 17, 2014, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate.
Required:
a. Compute the proceeds.
b. If the maker dishonored the note at maturity, prepare an entry or entries) for Max Corp. assuming $75 of bank protest fees.

Max Corp Sold Goods for $36,000 on July 17, 2014, and and Accepted