The note from Hart Company, made under customary trade terms,On both notes, interest is calculated on the outstanding principalreceivable from customers in exchange for services rendered.balance at the annual rate of 3% and payable at maturity.At year-end, Jet Company received two P1,000,000 noteson both notes, interest is calculated on the outstanding principalche note from Hart Company, made under customary trade terms,due in nine months and the note from Maxx Company is due infive years.The market interest rate for similar notes at year-end was 8%. Thecompound interest factors to convert future value into present valueat 8% follow:Present value of 1 due in nine monthsPresent value of 1 due in five years.944.680What is the total carrying amount of notes receivable at year-end?1,624,000а.1,747,200b.1,680,0001,782,000с.d.

Often business receive promissory note in lieu of cash payment from its customers. These promissory…

compound interest factors to convert future value into present value is due in nine months and the note from Maxx Company is due in balance at the annual rate of 3% and payable at maturity. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade terms, receivable from customers in exchange for services rendered. At year-end, Jēt Company received two P1,000,000 notes a hoth notes, interest is calculated on the outstanding principal che note from Hart Company, made under customary trade terms, e due in nine months and the note from Maxx Company is due in five years. The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% follow: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What is the total carrying amount of notes receivable at year-end? 1,624,000 а. 1,747,200 b. 1,680,000 1,782,000 с. d.

compound interest factors to convert future value into present value is due in nine months and the note from Maxx Company is due in balance at the annual rate of 3% and payable at maturity. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade terms, receivable from customers in exchange for services rendered. At year-end, Jēt Company received two P1,000,000 notes a hoth notes, interest is calculated on the outstanding principal che note from Hart Company, made under customary trade terms, e due in nine months and the note from Maxx Company is due in five years. The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% follow: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What is the total carrying amount of notes receivable at year-end? 1,624,000 а. 1,747,200 b. 1,680,000 1,782,000 с. d.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Similar questions

On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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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