ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%. Five months prior to maturity, ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10%. Required: Compute for the amount of proceeds from the note discounting and provide the entries for the discounting, assuming the note was discounted without recourse
ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%. Five months prior to maturity, ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10%. Required: Compute for the amount of proceeds from the note discounting and provide the entries for the discounting, assuming the note was discounted without recourse
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...
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ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%. Five months prior to maturity, ABS-CBN COMPANY discounted the note at Asia United Bank at an effective interest rate of 10%.
Required: Compute for the amount of proceeds from the note discounting and provide the entries for the discounting, assuming the note was discounted without recourse.
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