on july 31, 2020 clear company discounted at the bank a customer's 600,000 interest bearing note 6 month 10% note receivable dated may 31, 2020 .The bank discounted the note at 12% How much gain or loss should be recognized if the discounting is without recourse? a. 5,200 b. 25,200 c. 0 d. 22,500

on july 31, 2020 clear company discounted at the bank a customer's 600,000 interest bearing note 6 month 10% note receivable dated may 31, 2020 .The bank discounted the note at 12% How much gain or loss should be recognized if the discounting is without recourse? a. 5,200 b. 25,200 c. 0 d. 22,500

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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Question

on july 31, 2020 clear company discounted at the bank a customer's 600,000 interest bearing note 6 month 10% note receivable dated may 31, 2020 .The bank discounted the note at 12%

How much gain or loss should be recognized if the discounting is without recourse?

a. 5,200
b. 25,200
c. 0
d. 22,500

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