On April 1, 2020, Ironmon Company discounted with recourse a 9-month 10% note dated January 1, 2020 with face of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note in full plus 12% annual interest on the total amount due. What is the total amount collected from the customer on December 31, 2020?
On April 1, 2020, Ironmon Company discounted with recourse a 9-month 10% note dated January 1, 2020 with face of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note in full plus 12% annual interest on the total amount due. What is the total amount collected from the customer on December 31, 2020?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
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On April 1, 2020, Ironmon Company discounted with recourse a 9-month 10% note dated January 1, 2020 with face of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note in full plus 12% annual interest on the total amount due.
What is the total amount collected from the customer on December 31, 2020?
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