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Maturity value Discount Discount period Net proceeds from discounting Carrying amount of the notes receivable Gain or loss on note discounting (journal entry)

Maturity value Discount Discount period Net proceeds from discounting Carrying amount of the notes receivable Gain or loss on note discounting (journal entry)

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 18E: Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable...
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  1. Discounting of note receivable without recourse;

A P2,500,000, 180-day, 10% note dated August  1 was received from a customer and discounted without recourse on September 30 at 12% discount rate.

       Compute for;

  1. Maturity value
  2. Discount
  3. Discount period
  4. Net proceeds from discounting
  5. Carrying amount of the notes receivable
  6. Gain or loss on note discounting (journal entry)
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