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On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P8,000. How much is the total receivable of FDN Trading from ABC Co?

On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P8,000. How much is the total receivable of FDN Trading from ABC Co?

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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P8,000. How much is the total receivable of FDN Trading from ABC Co?
Transcribed Image Text:On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P8,000. How much is the total receivable of FDN Trading from ABC Co?
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