What amounts should two notes receivable be reported

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Reference no: EM132703280

Problem 1: On December 31, 2020, RENT Co. received two 50,000 notes receivable from customers A and B in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at annual rate of 3% and payable at maturity. The note from Customer A was made under customary trade terms and is due in 9 months. The note from Customer B is due in 5 years. The market interest rate for similar notes on December 31, 2020 was 8%. Kindly use PV factors rounded off to 3 decimal places. At what amounts should these two notes receivable be reported in RENT's December 31, 2020 statement of financial position?

Group of answer choices

a. A-47,200; B-34,050

b. A-50,000; B-39,158

c. some other answer

d. A-48,260; B-34,050

e. A-47,200; B-39,158

Reference no: EM132703280

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