Abbey is much more creditworthy and has various line

Reference no: EM13517774

On December 31, 2012, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $287,000 zero-interest-bearing note due December 31, 2014, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 12%. Abbey is much more creditworthy and has various lines of credit at 6%.

Reference no: EM13517774

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