Roth Company received from a customer a one-year, P500,000 note bearing an annual interest of 8%. After holding the note for six months, the entity discounted the note at 10%. What is the discount from the discounting of note?

Roth Company received from a customer a one-year, P500,000 note bearing an annual interest of 8%. After holding the note for six months, the entity discounted the note at 10%. What is the discount from the discounting of note?

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

Roth Company received from a
Customer a one-year, P500,000 note
bearing an annual interest of 8%.
After holding the note for six
months, the entity discounted the
note at 10%.
What is the discount from the
discounting of note?

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