On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note. After 30 days, FDN Company decided to discount the note to XYZ Bank that offers a 14% discount rate. How much is the cash received upon discounting?

On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note. After 30 days, FDN Company decided to discount the note to XYZ Bank that offers a 14% discount rate. How much is the cash received upon discounting?

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 June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day,
12% P90,000 note. After 30 days, FDN Company decided to discount the note to XYZ
Bank that offers a 14% discount rate. How much is the cash received upon discounting?

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