ADMIRABLE Company accepted from a customer P5,000,000 face amount, six- month, 10% note dated August 1, 2020. On October 1, 2020, ADMIRABLE discounted the note at Citi Bank at a 12% discount rate. What amount will ADMIRABLE receive from Citi Bank on October 1, 2020? O 5,040,000 5,210,000 O 5,000,000 O 5,250,000

ADMIRABLE Company accepted from a customer P5,000,000 face amount, six- month, 10% note dated August 1, 2020. On October 1, 2020, ADMIRABLE discounted the note at Citi Bank at a 12% discount rate. What amount will ADMIRABLE receive from Citi Bank on October 1, 2020? O 5,040,000 5,210,000 O 5,000,000 O 5,250,000

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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Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is: Multiple Choice $6,790 $210 $140
Mobile Co. issued a $59,421, 60-day, discounted note to Guarantee Bank. The discount rate is 11%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. $59,421 $52,885 $60,510 $58,332
On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note, 6-month, 10% note receivable dated May 31, 2020. The bank discounted the note at 12%. The net proceeds from this discounted note is O 576,000 O 564,000 617,400 604,800
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III. On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate. Required: Compute the amount of cash received from the sale (discounting).
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