Reference no: EM132794970

Questions -

Q1. On September 1, 2020, Thunder Company received an P80,000, 12%, 120-day note from a credit customer wishing to extend its repayment period. On October 2, 2020, thirty days after the note was received, Thunder discounted the note at the bank at 14%. Using 360 days in a year, how much cash did Thunder Company receive from the bank?

A. 80,749

B. 80,800

C. 80,288

D. 79,317

Q2. On December 1, 2021, Hero Company assigned P400,000 of accounts receivable to Halo Company as a security for a loan of P335,000. Hero Company charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During December, Hero collected P110,000 on assigned accounts after deducting P380 of discounts. Hero accepted returns worth P1,350 and wrote off accounts totaling P2,980. What is the carrying amount of the accounts receivable assigned as of December 31, 2021?

A. 285,290

B. Zero

C. 289,620

D. 290,000