On July 31, 20A, ABC company discounted at the bank, a customer's 1,200,000, 6-month 10% notes receivable dated May 31, 20A. The bank discounted the note at 12%. How much did ABC company recognize as loss on receivable discounting under the conditional sale? Assume 30 days a month

Q: On June 30, 2020, OPQ Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: Note receivable: It can be defined as an asset that represents a right on part of the holder to…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P8,000,000 note from ABC Co. FDN immediately…

A: Total Interest Expense = Value of Notes receivable x Interest Expense

Q: On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with…

A:

Q: On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15,…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Prefix Supply Company received a 120-day, 6% note for $500,000, dated April 12 from a customer on…

A: Journal entries are the primary reporting of the business transactions in the books of accounts,…

Q: ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%.…

A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

Q: Note receivable Prefix Supply Company received a 120-day, 7% note for $84,000, dated April 12 from a…

A: The journal entries are prepared to record the transactions on regular basis. The note receivable…

Q: On Dec. 8, Sheffield Company discounted at Sunshine Bank a $7,200 (maturity value), 122-day note…

A: Discount rate9%Maturity value $ 7,200.00Noted Period122days

Q: 120- day note of P100,000 dated October 1, non-interest bearing, and with a market rate of 9%…

A: Discounting of notes receivable refers to an amount of the payments received today being lower than…

Q: X Corporation accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. On…

A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

Q: On May 16, 20X1, Safeway Company received a 90-day, 10 percent, $7,000 interest-bearing note from…

A: Bills Receivable:These are the note or a document that given by the debtor formally agree for the…

Q: How much interest expense should the company report as a result of discounting, assuming the…

A: Discounting notes is the process of selling a promissory note to a third party—typically a financial…

Q: On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note…

A: Solution 1: Maturity value of note = P6,000,000 + P6,000,000*10%*6/12 = P6,300,000 Net proceeds from…

Q: Mobilee Oil Company accepted a $10,000, 120 day note dated March 3 at 8 1/2% to settle a past due…

A: The note receivables is a promise from the creditor to pay the amount with interest on the due date.…

Q: On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the…

A: Step 1 Discount of trade bills is short-term financing granted by the Bank. The Bank purchases trade…

Q: On July 18, Aui accepted a $15,000, 7¾%, 180-day note from Ryan. On October 5, Aui discounted the…

A: Interest is the fee a business pays a borrower (creditor) for a loan. Although there are many…

Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P4,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value + interest   = P4,000,000 +P4,000,000 *8%*90/360   =…

Q: On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu…

A: Working Note: Interest on the Note = Face value of the note x rate of interest x no. of days / 360…

Q: Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account.…

A: Journal Entry is the primary entry of business transactions. Every transaction has a dual effect…

Q: On June 30, 2002, Simon Company discounted a customer's $180,000, 6 month, 10 percent note…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Jones Corporation accepted a $25,000, 8%, 120-day note on July 8. Jones discounted the note on…

A: A discount note is a short-term debt obligation issued by highly-rated corporations or…

Q: On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co.…

A: Maturity value of the note = Face value + interest   = $2,000,000+2,000,000 *8%*90/360   =…

Q: On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face…

A: Proceeds of the note = Face value value of the note - discount amount

Q: ABC Company accepted a P400,000 face value, 6-month, 10 percent note dated May 15 from a customer.…

A: The discounted note receivable is getting money from bank against customers' note receivable.

Q: On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face…

A: We know that if a note is an interest-bearing note the borrower is obligated to pay the whole…

Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…

A: Factoring is the financial institution where firm can sell their account receivable at a discount…

Q: April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a…

A: Note payable is financial obligations use to raise funds to meet financial commitments of…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P45,000,000 note from ABC Co. FN immediately…

A: Notes receivable can be cashed earlier than their maturity date by selling the same to the bank. The…

Q: On July 31, 20A, ABC Company discounted at the bank, a customer's P1.2 million, 6-month 10% notes…

A: Recognized Gain or loss:- It is the profit one makes from selling an asset if the sale value is more…

Q: on september 1 excellent company received an p80,000, 12%, 120-day note from a credit customer…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: Foremost company's Received note bearing annual interest of 8% = P500000 Maturity = 1 year Maturity…