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Question
Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. (Assume a 360-day year when computing interest.)
a. Determine the due date of the note.
b. Determine the interest.
c. Determine the maturity value of the note.
d. Journalize the entry for the receipt of the note from Potts on February 3.
e. Journalize the entry for the receipt of payment of the note at maturity by Valley Co.
Answer
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