On December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000.  Cavite accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of P190,000 plus accrued interest on December 31, 2019 and December 31, 2020.  On July 1, 2020, Cavite discounted the note at a bank at a discount rate of 12%.

 Cavite Company's proceeds from the discounted note were?

Answer rating: 100% (QA)

To calculate Cavite Companys proceeds from the discounted note we need to consider the principal amo... View the full answer