Amount of notes receivable net of unamortized discount


Problem:

A company sells an old machine for $50K on 12/31/05. It had an original cost of $90,000. Sale terms were 10K down, 20K on 12/31 each of the next two years. 9% would be a fair rate for this transaction, although no mention of interest is made. Calculate the amount of the notes receivable net of the unamortized discount on 12/31/2005.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Amount of notes receivable net of unamortized discount
Reference No:- TGS01975771

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)