BTS Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After holding the note for two months, BTS discounted the note without recourse at East Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting. What was the loss recognized by BTS Company on the sale of notes receivable?

Q: A P2,400,000, 6-month, 10% note dated May 1 is received from a customer by an entity and discounted…

A: As you have posted multiple independent questions, we are answering first three requirements. Please…

Q: EXO Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: On May 2, Splish Company lends $8,900 to Chang, Inc., issuing a 6-month, 10% note. At the November…

A: Interest revenue = Amount of Notes receivable x rate of interest x no. of months/12 = 8900*10%*6/12…

Q: During the fiscal year ended December 31, Swanson Corporation engaged in the following transac-tions…

A: a) Notes to accounts: Interest expense for MGB= $12,000 × 12% × (45÷360) days…

Q: On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15,…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On February 1, 2021, JANE Company factored receivables with a carrying amount of ₱300,000 to JACK…

A: The amount of charges or fees imposed for factoring of accounts receivables are termed as  loss on…

Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the…

A: Receivables, loans, and other obligations that are likely to be paid are referred to as…

Q: Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year,…

A: Journal entries by far are one of the most crucial skills to develop in an accounting profession.…

Q: On January 1, Gabriel Company sold land with a carrying value of P1,000,000 in exchange for a…

A: PARTICULAR DEBIT CREDIT       sales 1,500,000      to land   1,000,000    to profit on sale…

Q: ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%.…

A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

Q: On July 31, 2021, JUNGKOOK  Company borrowed from a bank via issuing a 13.2% note. Transaction costs…

A: Meaning of the note is that it is a legal document that acts as an IOU from the borrower to the…

Q: Otter Company has a receivable amounting to P1,200,000; Otter had previously established an…

A: Net realizable value of receivables = Beginning receivable  - Beginning Allowance for bad debts =…

Q: The notes receivable account of Caimito, Inc. consisted of the following:    1. 60-day note of…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On July 31, 20A, ABC company discounted at the bank, a customer's 1,200,000, 6-month 10% notes…

A: Notes payable are signed arrangements (promissory notes) between two parties whereby one offered to…

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…

Q: oremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: Step 1 The bank discount rate is based on the instrument's par value and the amount of the notes…

Q: X Corporation accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. On…

A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

Q: Marylett Company accepted from a customer in settlement of an account a 4,000,000, 90-day 12% note…

A: The note receivable is a current asset for the business, which is issued as a promissory note by…

Q: Tri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and…

A: Since, note is a discount note( not interest bearing), the value of loan = discounted present Value…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: A promissory note is a financial instrument that contains a written promise by one party (the note's…

Q: On October 31, 2018 Garamond Company discounted at the bank a customer's P600,000, 6-month, 10% note…

A: Notes Receivables:-It is a written document in which the bearer receives the amount which the…

Q: Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas…

A: Compute the cash received.

Q: Paid the amount due on the note to Fargo Bank at the maturity date. Prepare journal entries for all…

A: Please see the next steps for solution.

Q: . On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on…

A: Discounted notes are a way for a business to reduce its receivable amount to meet its immediate…

Q: eceivable records were transferred to Buyer.            31 Buyer collected P234,000 during August…

A: Factoring is a type of finance technique, in which the company sells its receivables to another…

Q: On May 25, Al Mathir Company made a credit sale of OMR 320,000 to Wasan Company and received a note…

A: Following are the journal entries:

Q: On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the…

A: Step 1 Discount of trade bills is short-term financing granted by the Bank. The Bank purchases trade…

Q: A Corp. provided the following information regarding its Notes Receivable at December 31, 2021:…

A: Note  Gross carrying amount  Lifetime expected credit losses 12-month expected credit losses Credit…

Q: Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank.…

A: Total cash received = Accounts receivable X % remit = $60,000 x 90% = $54,000 Receivable from factor…

Q: Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was…

A: NOTE : As per BARTLE BY guidelines, when multiple sub parts are given then  the first three sub…

Q: At the beginning of the current year, Malice Company reported allowance for doubtful accounts of…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: EXO Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: Wanda Company sold accounts receivable without recourse for P8,200,000. The company received…

A: Formula: Loss on factoring = Net Realizable value of Accounts receivable - Sale value of receivable…

Q: On April 1, 2018, Audrey Company assigned accounts receivable totaling P400,000 as collateral on a…

A: Journal Entries

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Receivables is also known as accounts receivable which refers to the amount of debt owed to a firm…

Q: Holy Ground received from a customer a one-year, P375,000 note bearing annual interest of 8%. After…

A: Maturity value of note = Face value of note + interest = P375000 + (375000*8%*12/12) = P405,000…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Factoring is the technique where the accounts or note receivables has been sold by company to any…

Q: ABC Company accepted a P400,000 face value, 6-month, 10 percent note dated May 15 from a customer.…

A: The discounted note receivable is getting money from bank against customers' note receivable.

Q: Whispering Supply Co. has the following transactions related to notes receivable during the last 2…

A: .Journal entries are recorded to record financial transactions in the books of accounts. These…

Q: Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After…

A: The company will sell the products at cash or at credit. If the company sells the product at credit,…

Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…

A: Factoring is the financial institution where firm can sell their account receivable at a discount…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Given Information: Receivables with a carrying amount = ₱300,000 Finance charges = 3% Retention for…

Q: Otter company has a receivable amounting to P1,200,000 otter had previously established an allowance…

A: Solution : Given Face value of receivable               =1,200,000 Allowance for bad debts…

Q: Based on its past collection experience, Brody Company provides for bad debts at the rate of 2…

A: Option b is correct.

Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer…

A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: Foremost company's Received note bearing annual interest of 8% = P500000 Maturity = 1 year Maturity…

Q: Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank.…

A: