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Absolute Appliances The Company Sold Merchandise to a Customer on December 1

Question 119

Multiple Choice

Absolute Appliances
The company sold merchandise to a customer on December 1, Year 1, for $120,000. The company accepted a promissory note as payment. The note has a term of three months and an annual interest rate of 10%. The company's accounting period ends on December 31.
-Refer to the figure Absolute Appliances.What is the maturity date of the note?


A) December 31, Year 1
B) January 31, Year 2
C) February 28, Year 2
D) March 1, Year 2

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