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Question - On August 1, Batson Company issued a 60-day note with a face amount of $72,600 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.)
Required -
A. Determine the proceeds of the note assuming the note carries an interest rate of 10%.
b. Determine the proceeds of the note assuming the note is discounted at 10%.
Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory.
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