D owed C the following debts: P12,000.00 due on May 1; P12,000.00 due on May 5; P12,000.00 due on May 15 (secured by a pledge of D’s ring); and P12,000.00 due on May 25. On May 22, D wanted to tender payment to C but he had only P12,000.00. As of such date, none of the debts had been paid. In this case, D may apply the payment to:1 pointTo any of the debts due on May 1, May 5 and May 15, since they have all become due as of May 22.Any of the four debts since each one is of the same amount of the payment.All debts proportionately at P3,000.00.Only to the debt due on May 15 since it is the most onerous debt to D.

On May 1, 2018, D borrowed P100,000.00 from C. The loan is payable on or before April 30, 2019 and bears interest at 12% per annum. Which of the following statements is incorrect?1 pointD may pay before April 30, 2019.C may demand payment on April 30, 2019.D may pay on April 30, 2019.C may demand payment before April 30, 2019.

D borrowed P20,000.00 from C. The debt, which bears interest at 10% per annum, is due after one year. On due date, D paid C P20,000.00 representing the principal, but by that time C had already become insane. Later, G, the guardian of C, demanded payment from D but D presented a receipt issued by C acknowledging the payment. Upon investigation, G discovered that P8,000.00 was still in C’s possession; P9,000.00 was spent by C for groceries as evidenced by the receipt of Esem Supermarket; and P3,000.00 was admitted by C to have been lost by him in a gambling game. G may demand payment from D in the amount of:1 pointP14,000.00, representing the interest, the gambling loss, and the cost of groceries.P22,000.00, the total debt because payment to an incapacitated creditor is not valid.P5,000.00, representing the interest and the gambling loss.P2,000.00, representing the interest.

To settle a current debt your company has agreed to make payments of $10,000, 3 months from now and $15,000, 9 months from now. When the first payment becomes due, the company finds itself short of cash and enters into negotiation with the creditor. Eventually the creditor agrees that if the company makes a partial payment of $4,000 at the 3 month point, the balance must be paid at the 6 month point.The first new payment

Caddell Corporation borrows $100,000 from a bank on August 1, Year 1, by signing an 8 percent, six-month note for the amount borrowed plus accrued interest due six months later on February 1, Year 2. Which of the following is recorded on August 1, Year 1?Multiple Choice$100,000 credit to Cash$100,000 credit to Notes Payable$104,000 debit to Cash$104,000 debit to Notes Payable

A company borrows money as needed on the first day of the month and repays principal and interest on the last day of the budget period, if cash is available.  For the third quarter of the year, they borrowed $5,000 in July, $7,000 in August and $4,000 in June.  The interest rate is 1% per month.  Assuming enough money is available on June 30th to repay the debt, the total amount of interest due is $