Response to the following questions:
1. Holsten Interior Decorators issued a 90-day, 9% note for $25,000, dated April 6, to Maderia Furniture Company on account.
a. Determine the due date of the note.
b. Determine the maturity value of the note.
c. Journalize the entries to record the following:
(1) receipt of the note by the payee and
(2) receipt by the payee of payment of the note at maturity.
2. Tricia Fenton, vice president of operations for Billings National Bank, has instructed the bank's computer programmer to use a 365-day year to compute interest on depository accounts (payables). Tricia also instructed the programmer to use a 360-day year to compute interest on loans (receivables). Discuss whether Tricia is behaving in a professional manner.