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Meskerem Co. holds a 90-day, 10% note for Birr. 100,000.00 dated June.12 that was received from a customer on account. On June 30, the note is discounted at Borena Bank at the rate of 12.5%.
Problem a) Determine the maturity value of the Note.
Problem b) Determine the number of days in the discount period
Problem c) Determine the amount of the discount
Problem d) Determine the account of the proceeds
Problem e) Present the journal entry required to record the discounting of the note on June 30.
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