On August 1,2013,Ace Corporation Accepted a Note Receivable in Place

question 17

Multiple Choice

On August 1,2013,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the total amount collected at the maturity date?

• A)$123,965.00
• B)$2,479.30
• C)$126,444.30
• D)$121,485.70
• E)$133,882.20

---

Definitions:

Net Working Capital

A measure of a company's liquidity, calculated as current assets minus current liabilities.

Inventory Sale

The process of selling goods that a company has produced or purchased for resale.

Book Value

The net value of a company's assets minus its liabilities, often used to estimate the company's value if it were to be liquidated.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used, but not yet paid for.