An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 c. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 3E: Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from...
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1. What amount was received from the note receivable discounting?

a. 4,017,000
b. 4,120,000
c. 4,103,000
d. 3,965,500

2. What amount should be reported as loss on note receivable discounting?

a. 40,000
b. 23,000
c. 17,000
d. 20,000

3. An entity accepted from a customer in settlement of an account a P4,000, 000.
90-day 12% note dated August 31, 2019. On September 30, 20119, the entity
discounted the note at 15% with recourse at the bank. The note was paid in full
by the maker on maturity. The discounting is accounted for as a conditional sale
with recognition of a contingent liability.
1. What amount was received from the note receivable discounting?
a. 4,017,000
b. 4,120,000
С. 4,103,000
d. 3,965,500
2. What is the loss on note receivable discounting?
а. 40,000
b. 23,000
с. 17,000
d. 20,000
Transcribed Image Text:3. An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 С. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000
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