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Lonely Company accepted a P 200,000, 90-day, 12% interest bearing note dated November 15, 2021 from a customer. On December 15, 2021, Lonely discounted the note at Finance Company at 15% discount rate. Lonely informed the maker of the note regarding the discounting arrangement. On maturity date, the maker of the note did not pay the note, and as a result Finance Company charged Lonely Company for the total amount plus P 2,000 protest fee.                                                    QUESTION:                                         How much should Lonely Company pay to Finance Company when the maker fails to pay the note upon its maturity?                                         Group of answer choices P 206,000 P 208,000 NONE P 202,000

Lonely Company accepted a P 200,000, 90-day, 12% interest bearing note dated November 15, 2021 from a customer. On December 15, 2021, Lonely discounted the note at Finance Company at 15% discount rate. Lonely informed the maker of the note regarding the discounting arrangement. On maturity date, the maker of the note did not pay the note, and as a result Finance Company charged Lonely Company for the total amount plus P 2,000 protest fee.                                                    QUESTION:                                         How much should Lonely Company pay to Finance Company when the maker fails to pay the note upon its maturity?                                         Group of answer choices P 206,000 P 208,000 NONE P 202,000

FINANCIAL ACCOUNTING
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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Lonely Company accepted a P 200,000, 90-day, 12% interest bearing note dated November 15, 2021 from a customer. On December 15, 2021, Lonely discounted the note at Finance Company at 15% discount rate. Lonely informed the maker of the note regarding the discounting arrangement. On maturity date, the maker of the note did not pay the note, and as a result Finance Company charged Lonely Company for the total amount plus P 2,000 protest fee.                                        
          
QUESTION:                                        
How much should Lonely Company pay to Finance Company when the maker fails to pay the note upon its maturity?                                        

Group of answer choices
P 206,000
P 208,000
NONE
P 202,000
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