1.Bank of the Philippine Islands has loaned P12,000 to Aina Company using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be

A. P12,000

B. P12,240

C. P11,760

D. P240

2.Justine Company received the proceeds of P48,750 from discounting a P50,000, 90-day note at Metrobank. The discount rate used by the bank in computing the proceeds was

A. 10.26%

B. 10.00%

C. 9.75%

D. 6.25%

3.On July 1, 2019, Maricris Company received a P20,000 promissory note from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2020. If Maricris's fiscal year ends September 30, 2019, an adjusting entry is needed to:

A. Increase notes receivable by P1,000

B. Increase notes receivable by P250

C. Increase interest receivable by P250

D. Increase interest revenue by P1,000

4.Bruno received from a customer a one-year, P375,000 note bearing note bearing annual interest of 8%. After holding the note for six months, Bruno discounted the note at Super Bank at an effective interest rate of 10%. If the discounting is treated as a conditional sale, what amount of loss on discounting should Bruno recognize?

A. Zero

B. 9,750

C. 5,250

D. 20,250