Homework Help is Here – Start Your Trial Now!
Business
Accounting
An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 c. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000

An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 c. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000

Intermediate Accounting: Reporting And Analysis
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...
See similar textbooks
icon
Related questions
Question
100%

1. What amount was received from the note receivable discounting?

a. 4,017,000
b. 4,120,000
c. 4,103,000
d. 3,965,500

2. What amount should be reported as loss on note receivable discounting?

a. 40,000
b. 23,000
c. 17,000
d. 20,000

3. An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 С. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000
Transcribed Image Text:3. An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated August 31, 2019. On September 30, 20119, the entity discounted the note at 15% with recourse at the bank. The note was paid in full by the maker on maturity. The discounting is accounted for as a conditional sale with recognition of a contingent liability. 1. What amount was received from the note receivable discounting? a. 4,017,000 b. 4,120,000 С. 4,103,000 d. 3,965,500 2. What is the loss on note receivable discounting? а. 40,000 b. 23,000 с. 17,000 d. 20,000
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Current liabilities, Provisions and Contingencies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS