On January 16, Sheena Co. accepted a P600,000, 9%, 90 day note from customer. On February 10, the note was discounted at 12%.

Based on the above data, answer the following:

Case No. 1: Assume that the note was discounted on a without recourse basis

Compute for the following:

1. Cash received from discounting

2. Gain (or Loss) on notes receivable discounting

Case No. 2: Assume that the note was discounted with recourse and treat the discounting as a conditional sale recognizing contingent liability. Compute for the following:

3. Gain (or Loss) on notes receivable discounting

4. Assume that on April 16, the maturity date of the note, the maker of the note receivable which is discounted defaulted from payment and the bank charged Sheena for the maturity value of the note plus a P5,000 protest fee. How much will be debited to accounts receivable on April 16?

Case No. 3: Assume that the note was discounted with recourse and treat the discounting as a secured borrowing. Compute for the following:

5. Net interest income (or expense) as a result of discounting of notes receivable

6. Assume that on April 16, the maturity date of the note, the maker of the note receivable which is discounted defaulted from payment and the bank charged Sheena for the maturity value of the note plus a P5,000 protest fee. How much will be debited to accounts receivable on April 16?