A consumer gave ABS-CBN COMPANY a one-year, $500,000 note with an annual interest rate of 8%. ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10% five months before maturity. Assuming the note was discounted without recourse, compute the amount of revenues from the note discounting and submit the discounting entr
A consumer gave ABS-CBN COMPANY a one-year, $500,000 note with an annual interest rate of 8%. ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10% five months before maturity. Assuming the note was discounted without recourse, compute the amount of revenues from the note discounting and submit the discounting entr
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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A consumer gave ABS-CBN COMPANY a one-year, $500,000 note with an annual interest rate of 8%. ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10% five months before maturity.
Assuming the note was discounted without recourse, compute the amount of revenues from the note discounting and submit the discounting entries.
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