Tan Company accepted from a customer a 4,000,000, 90- day, 12% interest bearing noted dated August 31, 2020. On September 30, 2020, Tan discounted the note with recourse at the Apex State bank at 15%. However, the proceeds were not received until October 1, 2020. The discounting with recourse is accounted for as a conditional sale with recognition of a contingent liability. What is the amount received from the discounting of note receivable?
Tan Company accepted from a customer a 4,000,000, 90- day, 12% interest bearing noted dated August 31, 2020. On September 30, 2020, Tan discounted the note with recourse at the Apex State bank at 15%. However, the proceeds were not received until October 1, 2020. The discounting with recourse is accounted for as a conditional sale with recognition of a contingent liability. What is the amount received from the discounting of note receivable?
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
Related questions
Question
Tan Company accepted from a customer a 4,000,000, 90- day, 12% interest bearing noted dated August 31, 2020. On September 30, 2020, Tan discounted the note with recourse at the Apex State bank at 15%. However, the proceeds were not received until October 1, 2020.
The discounting with recourse is accounted for as a conditional sale with recognition of a
What is the amount received from the discounting of note receivable?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning