ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On the same date, the company discounted the note without recourse at a 12% discount rate. 1. What amount of cash was received from the discounting? 2. What is the gain (loss) on discounting?

ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On the same date, the company discounted the note without recourse at a 12% discount rate. 1. What amount of cash was received from the discounting? 2. What is the gain (loss) on discounting?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On
the same date, the company discounted the note without recourse at a 12% discount rate.
1. What amount of cash was received from the discounting?
2. What is the gain (loss) on discounting?

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