Nuggets Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. After holding the note for two months, Nuggets discounted the note without recourse at PRIA Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting. Question: 41. What was the gain or loss recognized by Nuggets on the sale of notes receivable?

Nuggets Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. After holding the note for two months, Nuggets discounted the note without recourse at PRIA Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting. Question: 41. What was the gain or loss recognized by Nuggets on the sale of notes 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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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