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Question
Watson Co. issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. (Assume a 360-day year when computing interest.)
a. Determine the due date of the note.
b. Determine the maturity value of the note.
c. Journalize the entries to record the following:
(1) Receipt of the note by the payee.
(2) Receipt by the payee of the amount due on the note at maturity.
Answer
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