- C November 3 is the due date of a $12,000, 90-day,
8% note receivable dated August 5 [26 days in August
(31 days 5 days) 30 days in September 31 days in
October3 days in November]. - B If a note is dishonored, Accounts Receivable is deb-
ited for the maturity value of the note (answer B). The matu-
rity value of the note is its face value (answer A) plus the
accrued interest. The maturity value of the note less accrued
interest (answer C) is equal to the face value of the note. The
maturity value of the note plus accrued interest (answer D) is
incorrect, since the interest would be added twice.
396 Chapter 8 Receivables
the balance of Allowance for Doubtful Accounts, $7,000, or
$93,000 (answer B).- C Maturity value is the amount that is due at the matu-
rity or due date. The maturity value of $10,300 (answer C) is
determined as follows:
Face amount of note $10,000
Plus interest ($10,000 0.1290/360) 300
Maturity value of note $10,300