A 60-day note receivable dated April 13 has a maturity date of
a. June 13.
b. June 12.
c. June 11.
d. June 10.
The correct answer and explanation is :
The correct answer is a. June 13.
Explanation:
A note receivable typically has a specified period of time for repayment, and the maturity date is determined based on the starting date and the length of the term. In this case, the note is due in 60 days from the date it was issued, which is April 13.
Here’s how to determine the maturity date step by step:
- Starting Date: The note was issued on April 13.
- Duration: The term of the note is 60 days.
- Counting the Days:
- Start by counting 60 days from April 13.
- April 13 to April 30 is 17 days.
- Then, move into May:
- May has 31 days.
- After accounting for all of May, you still need 60 – (17 + 31) = 12 days.
- The next month, June, starts on June 1, so counting 12 days from June 1 gives you June 12 as the last day of the 60-day term.
- June 13 is the maturity date, as it marks the first day after the 60-day period has expired.
So, the note’s maturity date is June 13, which is the day after the 60-day period ends.
In general, when calculating the maturity date, you should count the days from the issue date, including the date of issue as Day 1, and then ensure to account for the exact day the note becomes due.