Identify the term/s being asked in the following statements: part 2 4. The practice of realizing cash from accounts receivable before its maturity date is widespread. Defalcation is one of them. True or False? 5. This is the criterion to determine whether the transfer is accounted for as borrowing. 6. What account to debit if the company pays a delinquent notes receivable that was previously discounted. 7. On January 1, an entity received a one-year note receivable bearing interest at the market rate. The face value of the note receivable and the entire interest are due in one year. When the note receivable was recorded on January 1, the Interest receivable is debited. True or False? 8. A 120-day, 10% interest-bearing note receivable is sold to a bank with recourse after being held for 60 days. The proceeds are calculated using an 8% interest rate. In this situation, what happened to the notes receivable?
Identify the term/s being asked in the following statements: part 2
4. The practice of realizing cash from
5. This is the criterion to determine whether the transfer is accounted for as borrowing.
6. What account to debit if the company pays a delinquent notes receivable that was previously discounted.
7. On January 1, an entity received a one-year note receivable bearing interest at the market rate. The face value of the note receivable and the entire interest are due in one year. When the note receivable was recorded on January 1, the Interest receivable is debited. True or False?
8. A 120-day, 10% interest-bearing note receivable is sold to a bank with recourse after being held for 60 days. The proceeds are calculated using an 8% interest rate. In this situation, what happened to the notes receivable?
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