Quincy Industries issued a $10,000, 90-day, noninterest-bearing note on December 1, 2018, payable to the bank. At the

Question

Quincy Industries issued a $10,000, 90-day, noninterest-bearing note on December 1, 2018, payable to the bank. At the date of discount, the bank's discount rate was 18 percent. The company would receive how much cash on December 1, 2018, from the bank? O $10,000 O $8.200 O $11,800 O $ 9.550 D Question 2 1 pts Clearly determinable liabilities do NOT include: federal excise tax payable sales tax payable estimated product warranty payable accounts payable hp

Help In Homework · Accepted Answer

1.) Amount of interest charged by bank 450 =10000*18%*90/360 Note Amount 10,000 Less: Interest charged by bank -450 The company would receive cash $ 9,550 Correct answer is option 4 . 2.) Clearly determinable liabilities do not include estimated product warranty payable because clearly determinable liabilities are those whose existence and amounts are certain. Estimated product warranty payable is a Estimated liability. Correct answer is option 3.

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Quincy Industries issued a $10,000, 90-day, noninterest-bearing note on December 1, 2018, payable to the bank

Expert Solution

Archived Solution

1.)	Amount of interest charged by bank	450	=1000018%90/360

	Note Amount	10,000
	Less: Interest charged by bank	-450
	The company would receive cash	$ 9,550

	Correct answer is option 4 .

2.)	Clearly determinable liabilities do not include estimated product warranty payable because clearly determinable liabilities are those whose existence and amounts are certain. Estimated product warranty payable is a Estimated liability.

	Correct answer is option 3.