Maximus Company sold its inventory for P300,000 to Maxwell on January 2,2021 and received a one year Note bearing an interest rate or 12% for the full amount. On December 31,2021, Maxim determined based on Maxwell’s recent financial crisis, there’s a delay and change in the pattern of collection. The delay and change in the pattern show’s that P150,000 will be due on December 31, 2022 and 100,000 will be due on December 31,2023. What amount of impairment loss should Maxwell Company recognized on December 31,2021? none P86,000 P122,352 P136,701
Maximus Company sold its inventory for P300,000 to Maxwell on January 2,2021 and received a one year Note bearing an interest rate or 12% for the full amount. On December 31,2021, Maxim determined based on Maxwell’s recent financial crisis, there’s a delay and change in the pattern of collection. The delay and change in the pattern show’s that P150,000 will be due on December 31, 2022 and 100,000 will be due on December 31,2023. What amount of impairment loss should Maxwell Company recognized on December 31,2021? none P86,000 P122,352 P136,701
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3MC
Related questions
Question
Maximus Company sold its inventory for P300,000 to Maxwell on January 2,2021 and received a one year Note bearing an interest rate or 12% for the full amount. On December 31,2021, Maxim determined based on Maxwell’s recent financial crisis, there’s a delay and change in the pattern of collection. The delay and change in the pattern show’s that P150,000 will be due on December 31, 2022 and 100,000 will be due on December 31,2023. What amount of impairment loss should Maxwell Company recognized on December 31,2021?
none
P86,000
P122,352
P136,701
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT