Question
Crystal Company obtained a one-year loan of P5,000,000 from a bank on October 1, 2020. The loan was discounted at 12%. The company signed a
Crystal Company obtained a one-year loan of P5,000,000 from a bank on October 1, 2020. The loan was discounted at 12%. The company signed a note and pledged its accounts receivable of P5,000,000 as collateral for the loan. In relation to the loan, Crystal should report note payable on December 31, 2020 at __?
A. 4,400,000
B. 4,450,000
C. 4,550,000
D. 5,000,000
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Principles of Financial Accounting chapters 1-17
Authors: John Wild, Ken Shaw, Barbara Chiappetta
23rd edition
1259687740, 1259687747, 978-1259687747
