ABC discounted with recourse its P500,000 notes receivable, 10%, one-year note dated January 1, 2005. The note was discounted July 1, 2005 at discount rate of 12%. At maturity date, P50,000 of the discounted note was dishonored, and additional charge of P3,000 was collected by the bank. How much should be debited to Accounts Receivable for the dishonored note? P50,000         P53,000             P55,000         P58,000

6. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange for a promissory note requiring five annual payments of $1,000 each. The paymentsare to occur on December 31 of each year beginning on December 31, 2011. The note does notspecify any interest, and there is no market for the note. Based on the credit worthiness of VillasBoas Co. and the length of the note, it is estimated that Villas Boas Co. would have to pay 10%interest if it borrowed a similar amount from a bank. The amount of interest revenue recognizedby Chelsea for the year ended December 31, 2013 is:a. $174b. $249c. $317d. $347

Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is:   Multiple Choice   $6,790   $210   $140

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