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Question - On December 31, 2022, Jethro Company received two P1,000,000 notes receivable from customers in exchange for services rendered. For both notes, interest is calculated at 3% rate per annum and payable at maturity. The first note, from Heart Company, is due in nine months. The second note, from Max Company, is due in five years. The market interest rate for similar notes on December 31, 2022 was 8%.
Required -
How much is notes receivable from Heart to be reported on December 31, 2022?
How much is notes receivable from Max to be reported on December 31, 2022?
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