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On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note receivable dated April 30, 2022. the bank discounted the note at 12% on the same date. what amount of cash was received from the discounting? a.1,290,000 b.1,225,500 c.1,320,000 d.1,173,900   What is the gain or loss on note receivable discounting? a.66,100 loss b.Zero c.14,500 gain d.14,500 loss

On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note receivable dated April 30, 2022. the bank discounted the note at 12% on the same date. what amount of cash was received from the discounting? a.1,290,000 b.1,225,500 c.1,320,000 d.1,173,900   What is the gain or loss on note receivable discounting? a.66,100 loss b.Zero c.14,500 gain d.14,500 loss

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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On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note receivable dated April 30, 2022. the bank discounted the note at 12% on the same date. what amount of cash was received from the discounting?

a.1,290,000

b.1,225,500

c.1,320,000

d.1,173,900

 

What is the gain or loss on note receivable discounting?

a.66,100 loss

b.Zero

c.14,500 gain

d.14,500 loss

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