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Problem 1: If a 3-month noninterest bearing note receivable of ?10,00 is discounted at a bank a 10 percent. How much cash is received?
a. ?10
b. ?1,010
c. ?999
d. ?9,750
Problem 2: On June 1, Clinton Corp. accepted a customer's ?10,000, 9 percent 3-month note. On July 1, the note was discounted at a bank at a rate of 12 percent. How much cash did Clinton received from the bank on the discounted note?
a. ?9,800.00
b. ?9,942.50
c. ?10,020.50
d. ?10,250.00
What should Busbys Gross Profit be on accrual basis, Customers owed Busby $40,000 at the beginning
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