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What is the interest expense to be recognized

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Problem - Ling Company accepted from a customer P5,000,000 face amount, 6-month, 8% note dated at the beginning of the current year. On the same date, Aldous discounted the note with recourse at the bank at a 10% discount rate. The discounting is accounted for as a conditional sale. What is the interest expense to be recognized on the date of discounting?

Reference no: EM133016570

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