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Homework answers / question archive / Quincy Industries issued a $10,000, 90-day, noninterest-bearing note on December 1, 2018, payable to the bank
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
| 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. |
