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How much is the net proceeds from the discounting

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Problem - On June 1, 2020, Kielvj Company discounted a 6-month P1,500,000 customer note at 11% with a bank on a with recourse basis. The note has a nominal rate of 9% and dated May 1, 2020.

Required -

1. How much is the net proceeds from the discounting?

2. Under secured borrowing, how much is the increase (decrease) in liability on June 1, 2020?

3. Under conditional sale, how much is the increase (decrease) in assets on June 1, 2020? 6. Under secured borrowing, how much is the net interest income (expense)?

Reference no: EM132995232

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