On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June 1, 2017, with a bank at 16% on with recourse basis. The discounting is treated as a conditional sale. The bank uses 365 days per year in computing for discounts. On August 30, 2017 (maturity date), the maker of the note defaulted and the bank charged KYU Co. the maturity value of the note plus a P3,000 protest fee. How much is transferred to accounts receivable due to the dishonor?
On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June 1, 2017, with a bank at 16% on with recourse basis. The discounting is treated as a conditional sale. The bank uses 365 days per year in computing for discounts. On August 30, 2017 (maturity date), the maker of the note defaulted and the bank charged KYU Co. the maturity value of the note plus a P3,000 protest fee. How much is transferred to accounts receivable due to the dishonor?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 16EB: Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in...
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