March 30Loaned 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 30Discounted 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?

To solve the problem, we will calculate the cash received from discounting the note and the loss on…

Answered: March 30 Loaned an officer of the…

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....

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.