Question 9.5: Note Receivable Same Day Surgery Center received a 120-day, ......
Note Receivable
Same Day Surgery Center received a 120-day, 6% note for $40,000, dated March 14 from a patient on account.
a. Determine the due date of the note.
b. Determine the maturity value of the note.
c. Journalize the entry to record the receipt of the payment of the note at maturity.
a. The due date of the note is July 12, determined as follows:
March 17 days (31 – 14)
April 30 days
May 31 days
June 30 days
July \underline{12} days
Total \underline{120} days
b. $40,800 [$40,000 + ($40,000 × 6% × 120/360)]
c. July 12 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,800
Notes Receivable. . . . . . . . . . . . . . . . . . . . . . . . 40,000
Interest Revenue . . . . . . . . . . . . . . . . . . . . . . . 800