simple discount notes.Use the ordinary interest method
ADM D/R T B/D Proceed
$2900 6 1/4 180 days ? ?
Ar = Ab - I.
Ar = Ab - Ab*r*t.
Ar = 2900 - 2900*(0.0625/360)*180 = Amt. received.
Ab = Amt. borrowed.
ADM D/R T B/D Proceed
$2900 6 1/4 180 days ? ?
Ar = Ab - Ab*r*t.
Ar = 2900 - 2900*(0.0625/360)*180 = Amt. received.
Ab = Amt. borrowed.