On January 1, 200A, ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P4,000. Upon executing the sale, ABC received P2,000 down payment and a 12% 1 year promissory note for the balance. Compute the total amount of cash ABC received from the collection of the note on December 31.
On January 1, 200A, ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P4,000. Upon executing the sale, ABC received P2,000 down payment and a 12% 1 year promissory note for the balance. Compute the total amount of cash ABC received from the collection of the note on December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 200A, ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P4,000. Upon executing the sale, ABC received P2,000 down payment and a 12% 1 year promissory note for the balance.
Compute the total amount of cash ABC received from the collection of the note on December 31. 200A.
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