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  3. 7. on july 1, 2011 olive corp. sold equipment to p

7. On July 1, 2011 Olive Corp. sold equipment to Popeye Co. for P250,000. Olive...

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Accounting

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7. On July 1, 2011 Olive Corp. sold equipment to Popeye Co. for P250,000. Olive accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of P125,000 plus accrued interest on Dec and December 31, 2012. On July 1, 2012, Olive discounted the note at a bank at an interest rate of P12%. How much was Olive's proceeds from the discounted note? a. P121,000 b. 123,375 c. 125,875 d. 129,250

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