A Company accepted from a customer in settlement of an account a P5,000,000, 90-days 12% noted dated September 30, 2019. On October 31, 2019, an entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting with recourse is accounted for as a conditional sale with recognition of a contingent liability. What amount was received from the note receivable discounting? A. P5,000,000 B. P5,021,250 C. P5,150,000
A Company accepted from a customer in settlement of an account a P5,000,000, 90-days 12% noted dated September 30, 2019. On October 31, 2019, an entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting with recourse is accounted for as a conditional sale with recognition of a contingent liability. What amount was received from the note receivable discounting? A. P5,000,000 B. P5,021,250 C. P5,150,000
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
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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A Company accepted from a customer in settlement of an account a P5,000,000, 90-days 12% noted dated September 30, 2019. On October 31, 2019, an entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting with recourse is accounted for as a conditional sale with recognition of a
What amount was received from the note receivable discounting?
A. P5,000,000
B. P5,021,250
C. P5,150,000
D. P5,100,000
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