12. On November 1, 20x1, Forgive Co. discounted a P1,000,000, 90-day, 12% note, dated September 15, 20x1, with a bank at 16% on with recourse basis. The discounting is treated as conditional sale. The bank uses 365 days per year in computing for discounts. On December 14, 20x1 (maturity date), the maker of the note defaulted and the bank charged Forgive Co. the maturity value of the note plus a P1,00C protest fee. What amount is reclassified to accounts receivable on Dec 14 20x12

12. On November 1, 20x1, Forgive Co. discounted a P1,000,000, 90-day, 12% note, dated September 15, 20x1, with a bank at 16% on with recourse basis. The discounting is treated as conditional sale. The bank uses 365 days per year in computing for discounts. On December 14, 20x1 (maturity date), the maker of the note defaulted and the bank charged Forgive Co. the maturity value of the note plus a P1,00C protest fee. What amount is reclassified to accounts receivable on Dec 14 20x12

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 30E

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