Max Corp. sold goods for $36,000 on July 17, 2014, and accepted a 12%, 90-day note. On August 1, the note was discounted at 15%.
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

Max Corp. sold goods for $36,000 on July 17, 2014, and accepted a 12%, 90-day note. On August 1, the note was discounted at 15%.
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.

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 discounted at 15%.
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