On September 1, 2022, Darren Co. borrowed P150,000 from BPI by issuing 8% note due August 31, 2023, for the same amount. Darren Co. pledged all of its P200,000 accounts receivable as security. How much interest should be recognized on December 31, 2022?

On September 1, 2022, Darren Co. borrowed P150,000 from BPI by issuing 8% note due August 31, 2023, for the same amount. Darren Co. pledged all of its P200,000 accounts receivable as security. How much interest should be recognized on December 31, 2022?

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 September 1, 2022, Darren Co.
borrowed P150,000 from BPI by
issuing 8% note due August 31,
2023, for the same amount.
Darren Co. pledged all of its
P200,000 accounts receivable as
security. How much interest
should be recognized on
December 31, 2022?

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