Solution-What amount should be reported as loss on note

What amount should be reported as loss on note receivable

Reference no: EM132917558

Problem - On July 31, 2020, AAA Company discounted at the bank a customer's P600.000, 6-month, 10% note receivable dated May 31 2020. The bank discounted the note at 12% and determined to be with recourse. At maturity date, the customer dishonors the note and AAA pays plus the protest fee of P15,000. On December 31, 2020 AAA was able to collect from customer plus 8%% interest.

1. What amount should be reported as loss on note receivable discounting.

2. What amount should AAA Company pays to the bank when the customer dishonors the note.

3. What amount AAA company collects from the customer on December 31, 2020?

Reference no: EM132917558

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What amount should be reported as loss on note receivable

Reference no: EM132917558

Reference no: EM132917558

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