Anderson Corporation received a $60,000 note receivable from a customer on March 31, 2024. The note bears interest at 8% and is due on March 31, 2025. On July 31, 2024, Anderson discounted the note at City Bank at a 12% discount rate. What amount of loss should Anderson recognize on July 31, 2024? A. $1,200 B. $2,160 C. $2,400 D. $4,320

Anderson Corporation received a $60,000 note receivable from a customer on March 31, 2024. The note bears interest at 8% and is due on March 31, 2025. On July 31, 2024, Anderson discounted the note at City Bank at a 12% discount rate. What amount of loss should Anderson recognize on July 31, 2024? A. $1,200 B. $2,160 C. $2,400 D. $4,320

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

See similar textbooks

Similar questions

Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
March 30 Loaned an officer of the company $45,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $45,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. What is the cash received on the discounted note? What is the loss on sale of note receivable?
Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After holding the note for six months, the entity discounted the note at the bank at an effective interest rate of 10%. 1. What amount of cash was received from the bank? a. 540,000 b. 523,810 c. 513,000 d. 459,238 2. What is the loss on note receivable discounting? a. 20,000 b. 13,000 c. 7,000 d. 0
March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. Record the accrued interest revenue on the discounted note.
Assume Takham dishonors its note at its maturity in 2023; Oriole expects to eventually collect the note. Record the dishonor of the Takham note. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Date 2023 Account Titles and Explanation Debit Credit
Swifty Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note. 16 Received a $87,840, 180 day, 10% note to settle an open account from Joe Fernetti. 31 Accrued interest revenue on all notes receivable. 1. Journalize the transactions for Swifty Supply Co. (Ignore entries for cost of goods sold. 2. Record the collection of the Lopez note at its maturity in 2023.
Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note. Received a $4,000, 180 day, 9% note to settle an open account from Joe Fernetti. Accrued interest revenue on all notes receivable.
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 Next
Sheridan Supply Co. has the following transactions related to notes receivable during the last 2 months of 2022. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $21,600 cash to Manny Lopez on a 12 month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $54,000, 90-day, 8% note. Received a $53,280, 180 day, 10% note to settle an open account from Joe Fernetti. Accrued interest revenue on all notes receivable.
1. Journalize all entries for Symphony Bank related to the note for 2018 and 2019. 2. Which party has a a. note receivable? b. note payable? c. interest revenue? d. interest expense? 3. Suppose that Kara Perry defaulted on the note. What entry would Symphony record for the dishonored note?
I NEED HELPING MAKING THE TABLE Novak Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $27,000 cash to Manny Lopez on a 12-month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $74,250, 90-day, 8% note. 16 Received a $95,400, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable.