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Question - The notes receivable held by the Tuttle Company on August 3, 2019, are summarized below. On August 4, 2019, Tuttle discounted all of these notes at Community Bank and Trust at a discount rate of 10 percent.
Note No.
Date
Face Amount
Period
Interest Rate
31
Apr. 4, 2019
$60,000
6 months
8%
32
June 11, 2019
30,000
120 days
6
33
July 31, 2019
20,000
60 days
10
Required - Compute the net proceeds received from discounting each note.
Analyze - What is the net interest income or expense to be reported from these transactions assuming all notes are paid when due?
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