Numbers 8-10 On January 1, 2021, Cactus Company sold land with carrying amount of P1,500,000 in exchange for a 9- month, 10% note with face value of P2,000,000. The 10% rate properly reflects the time value of money for this type of note. On April 1, 2021, Cactus Company discounted the note with recourse. The bank discount rate is 12%. The discounting transaction is accounted for as a secured borrowing. On October 1, 2021, the maker dishonored the note receivable. Cactus Company paid the bank the maturity value of the note plus the protest fee of P10,000. On December 31, 2021, Cactus Company collected the dishonored note in full plus 12% annual interest on the total amount due. 8. What is the amount of proceeds received by Cactus Company from the discounting of note receivable? a. 2,150,000 b. 2,021,000 c. 2,050,000 d. 1,921,000 9. What is the interest expense to be recognized by Cactus Company on April 1, 2021? a. 50,000 b. 29,000 c. 21,000 d. 25,000 10. What is the amount collected by Cactus Company from the customer on December 31, 2021? a. 2,150,000 b. 2,224,800 c. 2,160,000 d. 2,214,500 11. If the records of an entity show a balance in a "Due from factor" or "Factor's holdback" account, it can be reasonably inferred that accounts receivables have been a. Pledged b. Assigned c. Factored d. Discounted 12. A 90-day, 15% interest-bearing note receivable is sold to a bank with recourse after being held for 60 days. The proceeds are calculated using a 12% interest rate. The amount credited to notes receivable at the date of the discounting transactions would be a. The same as the cash proceeds b. Less than the face value of the note c. The face value of the note d. The maturity value of the note 13. When accounts receivable are set aside as collateral for a loan, and the borrower continues to collect the receivables and applied the collections against the loan, the receivables have been a. Pledged b. Assigned c. Factored d. Discounted 14. A 120-day, 15% interest bearing note receivable is discounted to a bank at 18% after being held for 45 days. The proceeds received from the bank upon discounting would be the Maturity value less discount at 18% for 120 days b. Maturity value less discount at 18% for 45 days Maturity value less discount at 18% for 75 days d. a. C. Face value less than the discount at 15%