NEEDED IN 10 MINUTES 22. On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on September 15, 20x1, with a bank at 16% on a with recourse basis. The discounting is treated as a conditional sale. The bank used 365 days a year in computing the discounts. On December 14, 20x1, the maker of the note defaulted and the bank charged ABC the maturity value of the note plus a protest fee of P1,000. The entry to record the cash payment to the bank for the dishonored note would include a debit to (follow this example for your answer: Notes Receivable 2,200)
NEEDED IN 10 MINUTES 22. On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on September 15, 20x1, with a bank at 16% on a with recourse basis. The discounting is treated as a conditional sale. The bank used 365 days a year in computing the discounts. On December 14, 20x1, the maker of the note defaulted and the bank charged ABC the maturity value of the note plus a protest fee of P1,000. The entry to record the cash payment to the bank for the dishonored note would include a debit to (follow this example for your answer: Notes Receivable 2,200)
Intermediate Accounting: Reporting And Analysis
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....
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NEEDED IN 10 MINUTES
22. On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on September 15, 20x1, with a bank at 16% on a with recourse basis. The discounting is treated as a conditional sale. The bank used 365 days a year in computing the discounts. On December 14, 20x1, the maker of the note defaulted and the bank charged ABC the maturity value of the note plus a protest fee of P1,000. The entry to record the cash payment to the bank for the dishonored note would include a debit to (follow this example for your answer: Notes Receivable 2,200)
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