On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate. Required: Compute the amount of cash received from the sale (discounting).
On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate. Required: Compute the amount of cash received from the sale (discounting).
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 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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III. On April 7, 2020, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, 2020, the company sold the note to a bank at a 13% discount rate.
Required:
Compute the amount of cash received from the sale (discounting).
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