On January 1, 2021, Mickey Mouse Corporation borrowed P1,500,000 from Minnie Mouse Bank and issued a one-year note, which the bank discounted at 10%. Mickey Mouse Company hypothecated its accounts Receivable amounting to P2,200,000 as a collateral to the loan borrowed from Minnie Mouse Bank. It is also a policy of Minnie Mouse Bank to deduct in advance the one-year interest for the loan. How much is the amount of cash received from the bank on January 1, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 On January 1, 2021, Mickey Mouse Corporation borrowed P1,500,000 from Minnie Mouse Bank and issued a one-year note, which the bank discounted at 10%. Mickey Mouse Company hypothecated its accounts Receivable amounting to P2,200,000 as a collateral to the loan borrowed from Minnie Mouse Bank. It is also a policy of Minnie Mouse Bank to deduct in advance the one-year interest for the loan. How much is the amount of cash received from the bank on January 1, 2021?

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