Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15, the note was discounted at 12%.   At maturity date, the note was dishonored and the bank charged a P2,500 protest fee.   Compute the following assuming that the notes receivable was discounted with recourse – secured borrowing.   1. Maturity value   2. Net proceeds   3. Carrying amount of notes receivable

On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15, the note was discounted at 12%.   At maturity date, the note was dishonored and the bank charged a P2,500 protest fee.   Compute the following assuming that the notes receivable was discounted with recourse – secured borrowing.   1. Maturity value   2. Net proceeds   3. Carrying amount of notes receivable

Principles of Accounting Volume 1
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%...
See similar textbooks
icon
Related questions
Question

On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15, the note was discounted at 12%.

 

At maturity date, the note was dishonored and the bank charged a P2,500 protest fee.

 

Compute the following assuming that the notes receivable was discounted with recourse – secured borrowing.

 

1. Maturity value

 

2. Net proceeds

 

3. Carrying amount of notes receivable

 

4. Debited to Loss on Discounting

 

5. Interest income

 

6. Interest expense

 

7. Debited to ‘Note receivable dishonored’ or ‘Accounts receivable’ as a result of the dishonored note

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Notes
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.
Similar questions
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS