Page 408 - Accounting Principles (A Business Perspective)

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c. The name of the payee is not needed to compute interest expense on a promissory note.
c. The proceeds from a bank are computed as follows:
90
Discount amount=USD10,000 X 0.10× =USD250
360
Proceeds = USD 10,000 - USD 250 = USD 9,750

Accounting Principles: A Business Perspective 409 A Global Text