61. A promissory note: A. Is a short-term investment for the maker. B. Is a written promise to pay a specified amount of money at a certain date. C. Is a liability to the payee. D. Is another...

61. A promissory note:

A. Is a short-term investment for the maker.

B. Is a written promise to pay a specified amount of money at a certain date.

C. Is a liability to the payee.

D. Is another name for an installment receivable.

E. Cannot be used in payment of an account receivable.

62. The maturity date of a note receivable:

A. Is the day of the credit sale.

B. Is the day the note was signed.

C. Is the day the note is due to be paid.

D. Is the date of the first payment.

E. Is the last day of the month.

63. The interest accrued on $3,600 at 7% for 60 days is:

A. $36

B. $42

C. $252

D. $180

E. $420

64. A 90-day note issued on April 20 has a maturity date of:

A. July 17

B. July 18

C. July 19

D. July 20

E. July 21

65. A company receives a 10%, 90-day note for $1,500. The total interest due upon the maturity date is:

A. $37.50

B. $150.00

C. $75.00

D. $50.00

E. $87.50

66. A company receives a 7.5%, six-month note for $8,900. The total interest due on the maturity date is:

A. $66,750.00

B. $4,005.00

C. $2,002.50

D. $667.50

E. $333.75

67. A company receives a 6.2%, 60-day note for $9,650. The total amount of cash due on the maturity date is:

A. $598.30

B. $99.72

C. $9,650.00

D. $10,248.30

E. $9,749.72

68. The buyer who pays cash for an account receivable is referred to as a:

A. Payor

B. Pledgor

C. Factor

D. Payee

E. Pledgee

69. A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the journal?

A.

B.

C.

D.

E.

70. The refers to:

A. The creditworthiness of sellers.

B. The speed of collection.

C. The likelihood of collection without loss.

D. Sales turnover.

E. The interest rate.