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On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the note was discounted at 12%. Assume the note was discounted on a without recourse basis. Compute for the cash received from discounting. a. 613,500 b. 600,000 c. 600,207.50 d. 595,095 Gain (or Loss) on notes receivable discounting a. (3,542.50) b. 207.50 c. 13,500 d. 3,750 Assume that the note was discounted with recourse and treat the discounting as a conditional sale. Compute for the gain (or loss) on notes receivable financing

On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the note was discounted at 12%. Assume the note was discounted on a without recourse basis. Compute for the cash received from discounting. a. 613,500 b. 600,000 c. 600,207.50 d. 595,095 Gain (or Loss) on notes receivable discounting a. (3,542.50) b. 207.50 c. 13,500 d. 3,750 Assume that the note was discounted with recourse and treat the discounting as a conditional sale. Compute for the gain (or loss) on notes receivable financing

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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On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the note was discounted at 12%. Assume the note was discounted on a without recourse basis.

Compute for the cash received from discounting.
a. 613,500
b. 600,000
c. 600,207.50
d. 595,095

Gain (or Loss) on notes receivable discounting
a. (3,542.50)
b. 207.50
c. 13,500
d. 3,750

Assume that the note was discounted with recourse and treat the discounting as a conditional sale. Compute for the gain (or loss) on notes receivable financing

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