On October 31, 2018 Garamond Company discounted at the bank a customer's P600,000, 6-month, 10% note receivable dated Aug 31, 2018. The bank discounted the note at 12%. What amount of gain or loss should Garamond Company recognize from the transfer assuming the discounting is treated as a sale?

Q: On May 20, 2021, Gordon Company discounted with recourse a P75,000, 90-day, 8% note that was…

A: Maturity value of the note = Face value of note + interest = P75,000 + (P75,000*8%*90/360) = P75,000…

Q: A P2,400,000, 6-month, 10% note dated May 1 is received from a customer by an entity and discounted…

A: As you have posted multiple independent questions, we are answering first three requirements. Please…

Q: STU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019.…

A: Discounting of notes receivable or bills receivable is a technique where the instrument is paid by…

Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…

A: given that, The company assigned specific accounts receivable totaling P4,000,000 as collateral on a…

Q: On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately…

A: Given data, Face value=P9,000,000 Bank processing fee =P80,000     Maturity value of the note = Face…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value of the not + Interest on the note = 7000000 +…

Q: On July 31, 2020, Clear Company discounted at the bank a customer's 600,000 interest-bearing note,…

A: Solution: Maturity value of note = Principal + Interest = 600,000 + (600,000*10%*6/12) = 600,000 +…

Q: Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2021. The note,…

A: Notes receivables are a part of asset which are issued by the corporation  for a limited time period…

Q: On December 1, 2020, Lush Soma Company assigned specific accounts receivable totaling P5,000,000 as…

A: Part 1:

Q: Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year,…

A: Journal entries by far are one of the most crucial skills to develop in an accounting profession.…

Q: On January 1, 2020, CPA Co. sold land with carrying amount of P1,800,000 in exchange for a 10-month,…

A: Notes receivable are the asset of the firm where a borrower gives a written promise to lender to pay…

Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…

A: Solution : Given Face value          =P500,000 interest rate      =10% discount rate     = 12 % date…

Q: On july 1, 2017 LA company sold equipment to NA company for 1,000,000. LA accepted a 10% note…

A: Discounting a note receivable refers to the selling of the notes receivable in the future for a…

Q: On December 1, 2020,  Company assigned specific accounts receivable totalling P4,000,000 as…

A: Accounts receivable refers to the amount of goods and services rendered on credit but not payment…

Q: On April 1, 2020 XYZ Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Interest amount=P6000000×0.10×912=P350,000

Q: On October 31, 2022, BB Company discounted at the bank a customer’s P600,000 interest-bearing note,…

A: A credit sale by company, leads to creation of credit note which is interest bearing. Whnever the…

Q: On October 1, 2021, Claude Co. discounted a P600,000, one-year, 12% note, received from a customer…

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

Q: On April 1, 2020, Neptune Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: Face Value of note= P6,000,000 Duration and rate= 9-month, 10% note Bank discount rate= 12% Fee=…

Q: On December 1, 2020 LOVELY Company assigned on a non-notification basis accounts receivable of…

A: Here interest  is charged  on loan balance  not on note payable

Q: Marylett Company accepted from a customer in settlement of an account a 4,000,000, 90-day 12% note…

A: The note receivable is a current asset for the business, which is issued as a promissory note by…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Loss on factor = Accounts receivable x finance charge

Q: On April 1,2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…

A: Note payable: Note payable is a current liability reported in the company's balance sheet at the…

Q: On April 1, 2020 UVW Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Note receivables is an instrument issued for evidencing debt. It is generally issued for shorter…

Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: When an asset is exchanged at a fair price between two parties, the sum for which the asset is…

Q: On January 1, 2021, NOBLE Company sold goods in exchange for a P5,000,000, 1- year,…

A: Discount on notes = Face value of note x market rate of interest x no. of months/12 = P5000000 x 12%…

Q: On April 1, 2020 ZAB Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Interest expense is the expense on the cost of borrowing money. This price is charged by lender to…

Q: The following transactions relate to A Inc. in 2020: Aug 1: Assigned P6,000,000 of accounts…

A: Accounts Receivable - Assigned The purpose of using the assigned account in the accounts receivable…

Q: On April 1, 2020 RST Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Note receivable:  Note receivable refers to a written promise for the amounts to be received within…

Q: On Nov. 16, 2021, JUMBLE BEE sold with recourse a 10%, 60-day, P80,000 note receivable dated Nov. 1,…

A: Discounting a note with a resource means that the firm or business discounting the note agrees to…

Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Note receivable can be defined as a written contract between two parties under which one party…

Q: STFU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019.…

A: Maturity value of note = Face value + interest = P1,000,000 + (P1,000,000  x 8% x 6/12) = P1,040,000…

Q: How much cash did Thunder Company receive from the bank? *

A: Given information is: On September 1, 2020, Thunder Company received an P80,000, 12%, 120-day note…

Q: On July 1, 2020, Jolly Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing…

A: The notes receivable is an account in the balance sheet generally under the current assets if the…

Q: On October 31 2022. BB Company discounted at the bank a customer's P600,000 interest-bearing note, 6…

A: Maturity value of the Note = Face value of the Note + Interest on the note where, Interest on the…

Q: n February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: 1) Computing the amount of cash initially to be received as follows:   Total Charges = (3% + 5%)…

Q: n December 1, 2020, Max Company assigned specific accounts receivable totaling P5,000,000 as…

A: Answer: A note payable( short tern loan) is taken from a bank and accounts receivables are given as…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Factoring is the technique where the accounts or note receivables has been sold by company to any…

Q: STU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019.…

A: In case a note receivable is discounted, net amount is received by the entity who gets its…

Q: On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note…

A: The discount of note receivable is a way to get money from bank against note receivable before due…

Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…

A: The balance due to the company for goods and services provided but not yet charged by customers is…

Q: . What is the loss on note receivable discounting?

A: 1. Net Proceeds from discounting =Maturity Value-Discount on note Maturity Value…

Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…

A: Net Proceeds from discounted note = Maturity Value - Discount on note

Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…

A: Face Value of Notes Receivable=$308,000 Interest Rate = 10% The goods sold in exchange for a 5 year…

Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Notes receivable refers to an item which is present at the balance sheet of the company which…

Q: Marylett Company accepted from a customer in settlement of an account a 4,000,000, 90-day 12% note…

A: Interest till maturity = 4,000,000 x 90/360 x 12% =120,000 Discount value = Maturity value x Rate x…

Q: Swifty Company had the following select transactions. Apr. 1, 2020   Accepted Goodwin Company’s…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note…

A:

Q: Tan Company accepted from a customer a 4,000,000, 90- day, 12% interest bearing noted dated August…

A: Interest = Principal x Interest rate x Full term of the Note Receivable Maturity Value = Principal +…

Q: On December 31, 2020, the entity collected the dishonored note receivable in full plus 12% annual…

A: