I am still confused with our topic in on notes receivable and receivable financing. How do I solve for this? Thank you! On October 1, 2021, Claude Co. discounted a P600,000, one-year, 12% note,received from a customer on January 1, 2021, with a bank at 14% on a withoutrecourse basis.16. How much is the proceeds?17. How much is the loss on discounting?On July 1, 2021, Karrie Co. discounted an P800,000, 90-day, 12% note received froma customer on June 1, 2021, with a bank at 15% on with recourse basis. Thediscounting is treated as conditional sale. On August 30, 2021, at maturity date, themaker of the note defaulted and the bank charged Karrie Co. the maturity value ofthe note plus a P3,000 protest fee.18. How much is transferred to accounts receivable due to the dishonor?19. How much is the proceeds from the discounting?20. How much liability is recognized as a result of the discounting?

Since you have asked two questions under a single question, as per protocol we are supposed to…

On October 1, 2021, Claude Co. discounted a P600,000, one-year, 12% note, received from a customer on January 1, 2021, with a bank at 14% on a without recourse basis. 16. How much is the proceeds? 17. How much is the loss on discounting?

On October 1, 2021, Claude Co. discounted a P600,000, one-year, 12% note, received from a customer on January 1, 2021, with a bank at 14% on a without recourse basis. 16. How much is the proceeds? 17. How much is the loss on discounting?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EB: Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for...

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Question

I am still confused with our topic in on notes receivable and receivable financing. How do I solve for this? Thank you!

On October 1, 2021, Claude Co. discounted a P600,000, one-year, 12% note,
received from a customer on January 1, 2021, with a bank at 14% on a without
recourse basis.
16. How much is the proceeds?
17. How much is the loss on discounting?
On July 1, 2021, Karrie Co. discounted an P800,000, 90-day, 12% note received from
a customer on June 1, 2021, with a bank at 15% on with recourse basis. The
discounting is treated as conditional sale. On August 30, 2021, at maturity date, the
maker of the note defaulted and the bank charged Karrie Co. the maturity value of
the note plus a P3,000 protest fee.
18. How much is transferred to accounts receivable due to the dishonor?
19. How much is the proceeds from the discounting?
20. How much liability is recognized as a result of the discounting?

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