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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 2CE
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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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