Absolute Appliances The company sold merchandise to a customer on December 1,2012,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 Absolute Appliances.What is the maturity date of the note?

Question

Quizplus · Accepted Answer

The note has a term of three months starting from December 1, 2012. Therefore, the maturity date is three months later, on March 1, 2013.

Absolute Appliances the Company Sold Merchandise to a Customer on December