On 1/20/2007, a company borrowed an amount of $ 1,000 from the bank, to be repaid on 15/9/2007, and on 3/19/2007 the company agreed with the bank to pay 950, the required amount is: 1- Trade discount rate. |2- The correct discount price
Q: On December 1, 2017, Kreme Company assigned on a nonnotification basis accounts receivable of…
A: A loan taken by a company by assigning its accounts receivables to the bank. This means that the…
Q: create the journal entries for myers co. on 8/2/20, myers loaned a supplier 80,000 in exchange…
A: Journal entries recording is the first step of accounting process, in which atleast one account is…
Q: Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts…
A: Discount on notes = Face value of note x rate of discount x no. of days/360 days = $700,000 x 8% x…
Q: 10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice…
A: The credit terms are 2/15, n/45 that means 2% cash discount is allowed if the payment has been…
Q: First America Bank’s monthly payment charge on a 48-month, $20,000 loan is $488.26. U.S. Bank’s…
A: Months 48 Loan amount $ 20,000.00 First America Bank's monthly payment charge $ 488.26 U.S.…
Q: Company X has trade credit policy 1/10 N45. If you can borrow from a bank at 9,5% annual rate, would…
A: 1/10 net 45: 1/10 net 45 is a trade credit extended to the buyer from the seller which means the…
Q: on june 30,2024 the esquire company sold some merchandise to a customer for $30000.in payment,…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Scarlet Company received an invoice for $67,000.00 that had payment terms of 2/5 n/30. If it made a…
A: Many companies provide their customers with trade credit which is the ability to receive the goods…
Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…
A: Trade credit refers to the practice of businesses extending credit terms to their customers,…
Q: with a book and fair value of P50,000 and P30,000, respectively. bank receive if unsecured creditors…
A: In this case the fair value of inventory is P30,000 and the amount loaned to company is P40,000.…
Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…
A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…
Q: On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $120,900 on December…
A: Interest paid = Face Amount - Cash Proceeds = 120,900-116,400…
Q: 1. Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudential…
A: JOURNAL ENTRIES Journal entry is one of the important Step of Process of Accounting. Journal entry…
Q: A furniture company received a bill of payment of 1,143,253,000, which is due in 30 days. If paid…
A: Simple interest is interest derived from the principal/ original amount contributed to a savings…
Q: FDN Company signed a 90-day, 8% P150,000 note with the bank for cash borrowed. On maturity date, the…
A: The balance sheet represents the financial position of the business The note payable is recorded as…
Q: ABC Company accepted from a customer ₱600,000 face amount, 9-month, 8% note dated June 15, 20x2. On…
A: Discount on note @12% = Face value of note x rate of discount x no. of months/12 = ₱600,000 x 12% x…
Q: 1)What are the proceeds of $1,000,000 deposited in a bank on July 10 for 1 month at 1.5%? Take care…
A: Since you have posted multiple questions, we will solve the first question for you. If you want any…
Q: c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use…
A: Given, Invoice amount=$ 1,500 1/15, net 60, basis which means if company y pays within 15 days then…
Q: On April 1, 2025, Marigold Company assigns $505,300 of its accounts receivable to the Third National…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: ABC Company received a P1,800,000, 90-day, 12% note from a customer as payment for goods sold on…
A: In the context of the given question, we are required to compute the loss on discount to be recorded…
Q: What is the APR if the monthly rate of interest a credit card company charges on outstanding…
A: Given: Monthly rate = 1.62%
Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…
A: The interest amount to be received by the company shall be considered while calculating the amount…
Q: On 03.03.20X1 TK sold goods at a price of EUR 35,000 plus VAT on target to the customer CB. TK will…
A: Lets understand the basics Journal entry is required to make to record event and transaction that…
Q: 13) A customer with unpaid balance for merchandise of $210.00 from the previous month has been…
A: Finance charge as per unpaid balance method is computed by multiplying the unpaid balance with the…
Q: Company B uses $800,000 of its accounts receivables as collateral when the company borrowed…
A: The accounts receivable refers to the amounts due from customers for the goods and services provided…
Q: The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the…
A: Solution- = $340000 * 4% = 13600 Interest is calculated by applying Interest rate to the principle…
Q: 14.On August 31, 2014, Rognak Company discounted with recourse a customer's note at its bank at…
A: Loans are the amounts that are borrowed by individual from bank or from any other party. Interest…
Q: On June 3, 20X1, Georgia State Company received a $10,400, 45-day, 10 percent note from Sampson…
A: Part 1:Answer:The entry required by Georgia State when Sampson Byrd paid the discounted note on the…
Q: A bank charges 11% discount on short term loan& Find the sum received by the borrower who requests…
A:
Q: ABC discounted with recourse its P500,000 notes receivable, 10%, one-year note dated January 1,…
A: Interest accrued on discounted note = Face value of discounted note x rate of interest x no. of…
Q: roblem Solving. A promissory note which is dated January 1, 20A was received from a client for…
A: The promissory note carry the interest that is payable on the maturity of the note. that note can be…
Q: Selected information from the accounting records of Ellison Manufacturing Company follows: Net sales…
A: A number of days sales in inventory is a ratio that depicts the number of days a company's cash is…
Q: Scarlet Company received an invoice for $80,000.00 that had payment terms of 3/5 n/30. If it made a…
A: Step 1: Since partial payment is made within the discount period, the discount is given to the…
Q: The books of Blue moon bank as on 31/12/2019 showed the following information: Rebate on bills…
A: Rebate on bills discounted means discount received in advance. It is portion of discount which…
Q: On Nov. 16, 2021, JUMBLE BEE sold with recourse a 10%, 60-day, P80,000 note receivable dated Nov. 1,…
A: Discounting a note with a resource means that the firm or business discounting the note agrees to…
Q: Bulldog Inc. recently made a $75,000 purchase from a vendor. The vendor will accept payment by check…
A: ACH Payment means Automated Clearing House Network. It is an electronic fund transfer which is made…
Q: loan of 15700 was charged a simple discount rate of 4.2%. If the proceeds received were 15463.72,…
A: find the amount of bank discount.:: Bank discount=Proceeds -Maturity value=$15463.72-$15700=238.28$…
Q: A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills…
A: 1. The face value of the bills. Particulars Bill 1 Bill 2 Bill 3 Credit sales amount…
Q: Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500. a. How…
A: Credit sales refer to the sale of goods where the buyer pays after receiving the goods. It is very…
Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…
A: The loan can be taken from the organized banks and through the local lenders. The lender of the…
Q: Holy Ground received from a customer a one-year, P375,000 note bearing annual interest of 8%. After…
A: Maturity value of note = Face value of note + interest = P375000 + (375000*8%*12/12) = P405,000…
Q: Prepare the journal entry to record this transaction on January 2, 2025. (Credit account titles are…
A: The Customer May issue Note Receivable Against the payment for the Goods. When the company Inventory…
Q: On January 2, 2025, Sunland Inc. sells goods to Sandhill Company in exchange for a…
A: Note receivable When a note is issued to a company against the sale of goods to another company,…
Q: On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a…
A: Solution: Table values are based on: n= 5 i= 12.00% Cash flow Table Value Amount…
Q: An invoice dated 15th March 2021 for RM750 was paid on the 31st March 2021. If the trade discount…
A: Trade discount = Invoice amount x trade discount rate Cash discount = (Invoice amount - Trade…
Q: EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On…
A: solution part A : calculation of interest revenue note receivable =$50000 interest…
Step by step
Solved in 2 steps
- Mobile Co. issued a $49,712, 60-day, discounted note to Guarantee Bank. The discount rate is 12%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. a-$49,712 b-$48,718 c-$43,747 d-$50,706On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Shamrock and Bridgeport. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Shamrock, Inc. Oct. 1 Bridgeport National Bank Oct. 1Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
- Luna Company reported the following figures: 2020 2019 Net Credit Sales Account receivables at end of year $572,000 $38,700 $600,000 $46,100 Required: 1) Compute Luna's collection period of receivables for 2020. (Round to the nearest day) 2) Suppose Luna's normal credit terms for a sale on account are "2/10, n/30". How well does Luna's collection period compare to the company's credit terms? Is this good or bad for Luna Company?Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 8%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 10%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Tab 1) Record the accrued interest earned. Tab 2) Record the discounting of note receivable. Date General Journal Debit Credit February 28, 2021 ____________________________ ___________ ____________ _____________________________ ____________ ____________…choose the letter of the correct answer Company A borrows P500,000.00 from the bank and is required to maintain a 15% compensating. Further, Wilson has an unused line of credit of P200,000.00, with a required 11% compensating balances. What is the total required compensating balance the firm must maintain a. P75,000.00b. P22,000.00c. P97,000.00d. P182,000.00
- A loan of $10,000 is taken out on November 7, 2020 at a simple interest rate of r = 9%. The loan will be paid back on May 11, 2021. If the bank uses ordinary interest (the Banker's Rule), how much interest is charged? a $450.00 b $456.16 c $443.84 d $462.50Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. $ b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.A Scarlet Company received an invoice for $71,000.00 that had payment terms of 4/5 n/30. If it made a partial payment of $14,700.00 during the discount period, calculate the balance of the invoice. B Three invoices for the amounts of $34,800, $24,000, and $41,550 were received on August 25, 2014, September 24, 2014, and October 17, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on October 24, 2014 to settle all three invoices.
- Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2018. The note, along withinterest at 10%, is due on July 1, 2018. On February 28, 2018, Selkirk discounted the note at Unionville Bank. Thebank’s discount rate is 12%.Required:Prepare the journal entries required on February 28, 2018, to accrue interest and to record the discounting (roundall calculations to the nearest dollar) for Selkirk. Assume that the discounting is accounted for as a sale.Ireland Corporation obtained a $62,000 note receivable from a customer on June 30, 2021. The note, along with interest at 5%, is due on June 30. 2022. On September 30, 2021, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 8%. What amount of cash did. Ireland receive from Cloverdale Bank? Multiple Choice $58,094. $57,040. $62.775. < Prev 15 of 15 Next6. A business allows customers to pay with a credit card or with cash. If paid with cash, the customer receives a discount of 100r%, where 0