On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June 1, 2017, with a bank at 16% on with recourse basis. The discounting is treated as a conditional sale. The bank uses 365 days per year in computing for discounts. On August 30, 2017 (maturity date), the maker of the note defaulted and the bank charged KYU Co. the maturity value of the note plus a P3,000 protest fee. How much is transferred to accounts receivable due to the dishonor?

On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June 1, 2017, with a bank at 16% on with recourse basis. The discounting is treated as a conditional sale. The bank uses 365 days per year in computing for discounts. On August 30, 2017 (maturity date), the maker of the note defaulted and the bank charged KYU Co. the maturity value of the note plus a P3,000 protest fee. How much is transferred to accounts receivable due to the dishonor?

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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