An outside party issued a note to Affiliate X, who then sold the note to Affiliate Y.

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An outside party issued a note to Affiliate X, who then sold the note to Affiliate Y. Y discounted the note at an unaffiliated bank, endorsing it with recourse. Which party is primarily liable and which party is contingently liable for the note?

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Advanced Accounting

ISBN: 978-1118098615

5th Edition

Authors: Debra C. Jeter, Paul Chaney

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Question Posted: Jun 19, 2015 04:26 AM

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An outside party issued a note to Affiliate X, who then sold the note to Affiliate Y.

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Notes payable are always considered as liabilities either to the company or the person holdi...View the full answer

Advanced Accounting

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