Utah Co.sold merchandise to Big Sky Corp.on December 1,2017,for $9,000 and accepted a promissory note for payment in the same amount.The note has a term of 90 days and a stated interest rate of 8%.Utah's accounting period ends on December 31. What is the actual maturity date of the note?

Question

Quizplus · Accepted Answer

The actual maturity date of the note is calculated by adding the term of the note (90 days) to the date the note was issued (December 1, 2017). This calculation results in March 1, 2018, as the maturity date.

Utah CoSold Merchandise to Big Sky Corp