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Compute the gain or loss recognized by BTS on the sale

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Problem - BTS Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. After holding the note for two months, BTS discounted the note without recourse at Big Hit Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting. Compute the gain or loss recognized by BTS on the sale of notes receivable?

Reference no: EM132936305

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