Summerz Company Granted an Extension on an Open Account by Accepting

question 20

Multiple Choice

Summerz Company granted an extension on an open account by accepting a 30-day note for $7,000 dated June 20, from SunnyView Company. To raise cash, Summerz sold the note to a bank on June 29. The days held by endorser and the discount period of the note is:​

• A) ​9 days and 21 days, respectively.
• B) ​21 days and 9 days, respectively.
• C) ​8 days and 22 days, respectively.
• D) ​10 days and 20 days, respectively.