On June 30, 2015, Ray Company discounted at

the bank a customer P6,000,000, 6-month, 10%

note receivable dated April 30, 2015. The bank
discounted the note at 12% without recourse.

1. What is the amount received from the note

receivable discounting?
2. What is the loss on note receivable
discounting?
Rand Company accepted from a customer a P4,000,000, 90-
day, 12 % interest-bearing note dated August 31, 2015. On
September 30, 2015, the entity discounted the note with
recourse at the Apex State Bank at 15%.
However, the proceeds were not received until October 1,
2015. The discounting with recourse is accounted for as a
conditional sale with recognition of a contingent liability.

1. What is the amount received from the note receivable

discounting?
2. What is the loss on note receivable discounting?
On August 31, 2015, Sunflower Company discounted with
recourse a note at the bank at discount rate of 15%. The note was
received from the customer on August 1, 2015, is for 90 days, has
a face value of P5,000,000, and carries an interest rate of 12%. The
discounting transaction is accounted for as secured borrowing.
The customer paid the note to the bank on October 30, 2015, the
date of maturity. What is the interest expense to be recognized on
August 31, 2015?

1. What is the amount received from the note receivable

discounting?
2. What is the loss on note receivable discounting?
On August 31, 2015, Sunflower Company discounted with
recourse a note at the bank at discount rate of 15%. The note was
received from the customer on August 1, 2015, is for 90 days, has
a face value of P5,000,000, and carries an interest rate of 12%. The
discounting transaction is accounted for as secured borrowing.
The customer paid the note to the bank on October 30, 2015, the
date of maturity. What is the interest expense to be recognized on
August 31, 2015?

1. What is the amount received from the note receivable

discounting?
2. What is the loss on note receivable discounting?