ber 30, 2025, the maturity. The c ty.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6-7
Numbers 6-7
Marylett Company accepted forma customer in settlement of an account a P4,000,000, 90-day 12% note dated August 31,
2025. On September 30, 2025, 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 with recourse is accounted for as a conditional sale with recognition of a
contingent liability.
6. 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
7. What is the loss on note receivable discounting?
c. 17,000
a. 40,000
b. 23,000
d. 0
Transcribed Image Text:Numbers 6-7 Marylett Company accepted forma customer in settlement of an account a P4,000,000, 90-day 12% note dated August 31, 2025. On September 30, 2025, 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 with recourse is accounted for as a conditional sale with recognition of a contingent liability. 6. 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 7. What is the loss on note receivable discounting? c. 17,000 a. 40,000 b. 23,000 d. 0
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