Question: Company accepted from a customer a P4,000,000, 90-day, 12% note dated August 31, 2019. On September 30, 2019, the entity discounted without recourse the note

Company accepted from a customer a P4,000,000, 90-day, 12% note dated August 31, 2019.

On September 30, 2019, the entity discounted without recourse the note at 15%. However, the proceeds were not received until October 1, 2019.

What amount should be reported as loss on note receivable discounting?

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