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Pledge of Accounts Receivable
Pledge of Accounts Receivable
Discount of notes payable only occurs when stated in the problem, if the
problem is silent then disregard the discount.
When accounting period ends while the loan is still maturing, adjusting
the discount balance by multiply the months passed and dividing it to
the total months of the loan til maturing (12 months since its 1 year
agreement) to indicate the remaining discount on notes receivable,
and is amortized as interest expense.
Dec 31 2022
Interest Expense 60,000 (240,000x3/12)
Discount on Notes Payable 60,000