On February 1, Ville Company received a $6,000, 5%, four-month note receivable.The cash to be received by Ville Company when the note becomes due is

Question

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The cash to be received by Ville Company when the note becomes due is $6,000 (the face value of the note), plus $100 in interest (5% of $6,000 for four months). Therefore, the total amount to be received is $6,100.

On February 1, Ville Company Received a $6,000, 5%, Four-Month