Question

On August 2, Jun Co. receives a $6,300, 90-day, 12% note from customer Ryan Albany as payment on his $6,300 account receivable. 1. Compute the maturity date for the above note. multiple choice October 29 October 30 October 31 November 1 November 2

Answer 1

Answer: October 31

Explanation:

It is a 90 day Note so the maturity date will be:

= August 2 + the remaining 29 days in August + 30 days in September + 31 days in October

= October 31

The expiry date will be October 31 as this would be 90 days from August 2, when the note was received.