What amount should be recognized as loss on note for stu co

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Reference no: EM132806313

On April 1, 2020 STU Company discounted with recourse a 7-month, 10%% note dlanded January 1, 2020 with face amount of P6,000,000. The bank discount rome is 1296. The discounting transaction is accounted for as a conditional sale with recognition of contingent liability. On October 1, 2020, the maker dishonored the note receivable. The entity poid the bank the moturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note receivable in ful plus 12% annual interest on the total amount due.

Required:

Problem 1: What is the forol amount collected from the customer on December 31, 2020

Problem 2: What amount should be recognized as loss on note receivable discounting? of What amount was received from the note receivable

Reference no: EM132806313

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