At December 31 year-end, Camp Corporation has a $10,800 note receivable from a customer. Interest of 9% has accrued for 5 months on the note. What will Camp's income statement for the year ended December 31 report for this situation? OA. Nothing because the business has not received the cash yet OB. Interest revenue of $405 OC. Note receivable of $10,800 OD. Both b and c

At December 31 year-end, Camp Corporation has a $10,800 note receivable from a customer. Interest of 9% has accrued for 5 months on the note. What will Camp's income statement for the year ended December 31 report for this situation? OA. Nothing because the business has not received the cash yet OB. Interest revenue of $405 OC. Note receivable of $10,800 OD. Both b and c

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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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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At December 31 year-end, Club Company has an $8,000 note receivable from a customer. Interest of 6% has accrued for 7 months on the note. What will Club's income statement for the year ended December 31, report for this situation? OA. Nothing because the business has not received the cash yet OB. Note receivable of $8,000 OC. Interest revenue of $280 OD. Both b and c
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