Question: Sponge Corp. received from a customer a P4,000,000, 90-day, 12% interest-bearing note dated June 1, 2019. On July 1, 2019, the entity discounted the note

Sponge Corp. received from a customer a P4,000,000, 90-day, 12% interest-bearing note dated June 1, 2019. On July 1, 2019, the entity discounted the note with recourse at NZ Bank at 15%

What is the amount received from the discounting of note receivable?

a. P4,017,000 b. P3,965,500 c. P4,120,000 d. P4,103,000

What is the loss on note receivable discounting?

a. P20,000 b. P17,000 c. P40,000 d. P23,000

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