Able Co Accepted a $20,000 Note on March 10 with Terms

question 49

Short Answer

Able Co. accepted a $20,000 note on March 10 with terms of 6%, 60 days. Able Co. discounted the note on March 20, at the Green Bank at 7%. Use ordinary interest. What net proceeds did Able receive?

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Definitions:

Opportunity Cost

The detriment of not pursuing the second-top option when engaging in decision-making.

Manufacturing

The process of using machines, tools, and labor to produce goods for use or sale.

Export

Goods or services sold by a country to buyers in another country.

Import

The process of importing products or services from foreign countries for the purpose of selling them domestically.