question archive a trading company is under your audit for the year 2021, data related to its notes receivable during the period were summarized below: a
a trading company is under your audit for the year 2021, data related to its notes receivable during the period were summarized below: a
Subject:AccountingPrice: Bought3
a trading company is under your audit for the year
2021, data related to its notes receivable during the period were
summarized below:
a. March 1. 2021, sold goods and received a P250,000 two-year, non.
interest-bearing note. Interest effective on this date was at 12%
b. September 30, 2021, sold goods and received a P200,000, 10-month
5% interest bearing note from a customer.
January 1, 2021, sold goods with a total price of P330,000. Receiving
P30,000 cash and a P300,000, three-year, 10%, interest bearing note
to be collected in three equal payments to principal every December 31
starting 2021 which includes interest based on outstanding balance.
The market rate of interest for this level of risk was 14 percent.
