Bruno received a one-year P375,000 note bearing annual interest of 8% from a customer. after holding the notes for six months, Bruno discounted the note at Special bank at an effective interest rate of 10% Question: if the discounting is treated as a borrowing what amount of loss on discounting should Bruno recognize? a. 20,250 b. NONE c. 5,250 d. 9,750

Bruno received a one-year P375,000 note bearing annual interest of 8% from a customer. after holding the notes for six months, Bruno discounted the note at Special bank at an effective interest rate of 10% Question: if the discounting is treated as a borrowing what amount of loss on discounting should Bruno recognize? a. 20,250 b. NONE c. 5,250 d. 9,750

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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