Accounting Homework Help?
In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $225, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $7,725 in payment of this note receivable. Further investigation reveals that on November 19, 20Y7, this note receivable was received from Fast Feet Co. for $7,500. You can find no additional information about this note in the accounting records. Assume a 360 day year.
Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet.
1. Term of the note (days):
2. Interest rate of the note:
- Don GLv 71 month agoBest Answer
1. Nov 11 days, Dec 31, Jan 31, Feb 28, Mar 18 = 119 days
2. $225 / 119 = $1.891 per day x 360 = 680.76 per yr / $7,500 = 9.077%