Question
A Corp., a company that operates on a calendar-year basis, has been approved of a loan from Island Bank on July 1, 2020, for P5,000,000.
A Corp., a company that operates on a calendar-year basis, has been approved of a loan from Island Bank on July 1, 2020, for P5,000,000. The loan, which matures on June 30, 2021, bears an interest of 10% per annum. According to the agreement, A pledged P6,000,000 of its accounts receivable as a security for the loan. What amount should be recognized as Notes Payable?
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
