JAM Company accepted a P400, 000 face value, six-month, 10% note dated May 15 from a customer. On that same date, Jam discounted the note at East Bank at a 12% discount rate. How much was cash should Jam receive from the bank on May 15?  

 
62. Assume that JAM discounted the note four months prior to its maturity date, what is the proceeds from discounting the note?  

63. FOREMAN Company had an accounts receivable balance of P800, 000 at the end of its first year of operations. These receivable balances were net of the related allowance for doubtful accounts. During the first year of its operations, FOREMAN recorded charges to bad debt expense of P100, 000 and wrote-off as uncollectible, accounts receivable of P30, 000. The accounts receivable before the allowance for doubtful accounts that should be shown on the Foreman balance sheet at the end of its first year of operation is ?  


64. On September 1, REAM Company assigns specific receivables totaling P750, 000 to PACIFIC Bank as collateral on a P625, 000, 12% note. REAM Company will continue to collect the assigned accounts receivable. Pacific also assesses a 2% service charge on the total accounts receivable assigned. REAM Company is to make monthly payments to PACIFIC with cash collected on assigned accounts receivable. What were the proceeds from the assignment of Ream's accounts receivable on Sept. 1?

Answer rating: 100% (QA)

61 To calculate the cash that Jam Company should receive from the bank on May 15 we need to determine the discount amount The discount amount is calcu... View the full answer