NNN Company factored P5,000,000 of accounts receivable to ABC Company on July 1, 2020. Control was surrendered by NNN. ABC assessed a fee of 5% and retains a holdback equal to 20% of the accounts receivable. In addition ABC charged 12% computed on a weighted average time to maturity of the receivables of 30 days. 33.In the 2020 income statement, what amount should be reported as interest income?

Q: At the end of its first year of pperations, December 31, 2020, ABC Company had accounts receivable…

A: Accounts receivable  before  allowance for doubtful  accounts  = accounts receivable  + allowances…

Q: Culver Corp. factors $351,000 of accounts receivable with Larkspur Finance Corporation on a without…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: PLKO Co. factored P160,000 accounts receivable to NCD Financing Corp on a with recourse basis on…

A: Factoring is the facility wherein the company sells its account receivable to third party called…

Q: On December 31, 2021, the VKS Finance Company had a P3,000,000 note receivable from JP Company. The…

A: Computation of recoverable amount from note receivable on December 31, 2021:   Year cashflow pv…

Q: Lucas Co. provides for bad debt expense at the rate of 1% of sales on account. The allowance for…

A: Bad debt expenses are those expenses which cannot be collectible from the debtor. Allowance for…

Q: returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring…

A: As each customer a/c balance cannot be shown in financials, the Accounts Receivables account is used…

Q: On April 1, 2021, JPG Company sold for P84,000 a stereo which paid had a cost of P54,600. A down…

A: Sales value = P84,000 Cost = P54,600 Down payment = P9,000 Additional payment = P7,500 × 4 months…

Q: On February 1, 2021, JANE Company factored receivables with a carrying amount of ₱300,000 to JACK…

A: The amount of charges or fees imposed for factoring of accounts receivables are termed as  loss on…

Q: On December 31, 2021, The Essence Finance Company had P5,000,000 note receivable from Galena…

A: When there are certain indications that the recoverable amount from the asset has been declined…

Q: On June 30, 2021, BTS Company factored P2,500,000 of accounts receivable for P2,250,000. The…

A: Loss on factored = (Accounts receivable - allowance for uncollectible accounts) - Amount received =…

Q: On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable…

A: Prepare partial balance sheet for Holmes Company at December 31, 2020.

Q: Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A -…

A: What is meant by Factoring? Factor means a source of funding that provides the company value of…

Q: ABC Company has an allowance for uncollectible accounts balance of P34,000 at January 1, 2020.…

A:

Q: On December 31, 2020, the Bato-bato Finance Company had P5,000,000 notes receivable from Burgundy…

A: An impairment loss is a loss that is incurred due to a decline in the value of an asset…

Q: 0.On January 1, 2021, BNY Company had Accounts Receivable and Allowance for Uncollectible Accounts…

A: Carrying amount of Accounts Receivable = Gross value of accounts receivable - Allowance for…

Q: based on its past collection experience, JSC Company provides for bad debt at the rate of 2 percent…

A: Bad debt represents the amount of the accounts receivable for which the payment is not received from…

Q: Guasha Corp. factored P600,000 of accounts receivable to Stalactite Corp. on October 1, 2020.…

A: Accounts receivable is the balance of the amount due to the company for goods or services provided…

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: >Long Term assets are recorded in the books of account at their acquisition cost. >If these…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Solution:- Introduction:- The following information given in the problem as follows:- factored…

Q: Company factored P6,000,000 of accounts receivable to a certain bank at the end of current year.…

A: Total Cost -: The Total Cost is the actual cost that occurred in the generation of a provided level…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value + interest = P10,000,000 +P10,000,000 *8%*90/360 = P10200000

Q: On February 1, 2020, Henson Company factored receivables with a carrrrying amount of $700,000 to…

A: Determine the amount of loss on sale to be reported in the income statement.

Q: On December 1, 2021, Boxer Company assigned P 400,000 of accounts receivable to Karate Company as a…

A: The amount owed to a company for goods or services delivered or used but not yet paid for by…

Q: Greenyard Corp. factored P200,000 accounts receivable to Provider Financing Corp. on a without…

A: The proceeds received will be net of the service fee, interest and amount retained.

Q: 1. Oreo Company will receive and record cash of 3,700,685 2. Assuming all receivables are…

A: working notes: 1) fee =P5,000,000 *5%=P250000 hold back =P5,000,000 *20%=P1000000…

Q: On December 31, 2020, the Reliable Finance Company had P5,000,000 notes receivable from Burgundy…

A: When there are certain indications that the recoverable amount from the asset has been declined…

Q: Pina Corp. factors $ 428,000 of accounts receivable with Grouper Finance Corporation on a without…

A: a.   Date  Account title and explanation Debit Credit July 1 ,2020 Cash $399,324…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Loss on factor = Accounts receivable x finance charge

Q: eceivable records were transferred to Buyer.            31 Buyer collected P234,000 during August…

A: Factoring is a type of finance technique, in which the company sells its receivables to another…

Q: At December 31, 2020, end of the annual reporting period, the accounts of ABC company showed the…

A: Part-1) Bad Debt Expense = Amount to be written off - Allowance for Doubtful Debts Part-2a) Bad Debt…

Q: Company had the following information relating to its accounts receivable:…

A: Solution: Accounts receivable before allowance for uncollectible accounts are computed as beginning…

Q: The following transactions relate to A Inc. in 2020: Aug 1: Assigned P6,000,000 of accounts…

A: Accounts Receivable - Assigned The purpose of using the assigned account in the accounts receivable…

Q: 13. On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: given information factored recivables =  ₱ 300,000 finance charge = 3% retains receivables for sales…

Q: Culver Corp. factors $351,000 of accounts receivable with Larkspur Finance Corporation on a without…

A: Journal entries are prepared to record the financial and non-financial transactions of the business.

Q: NNN Company factored P5,000,000 of accounts receivable to ABC Company on July 1,  2020. Control was…

A: working notes: 1) fee =P5,000,000 *5%=P250000 hold back =P5,000,000 *20%=P1000000…

Q: January 1, 2021, Hopper Company sold merchandise costing P150,000 to Eleven , who issued a…

A: Sale price = P250000 merchandise costing P150,000  Gross profit is P100000 Gross profit ratio=…

Q: On December 31, 2020, Oriole Company has $6,941,000 of short-term debt in the form of notes payable…

A: Notes payable  that expected to be refinanced Minimum= 5949000×52% =$3093480 Maximum=7947000× 52%…

Q: Culver Company shows a balance of $237,880 in the Accounts Receivable account on December 31, 2020.…

A: A balance sheet is a financial statement that reports a company's assets, liabilities, and…

Q: On December 31, 2021, the Trust Finance Company had a P5,000,000 note receivable from Leila Company.…

A: Given, Notes receivable = P5,000,000 Interest rate = 10% Accrued interest = P500,000 Reduction of…

Q: On December 31, 2020, the Reliable Finance Company had P5,000,000 notes receivable from Burgundy…

A: Working Notes: Computation of present value of restructured notes receivable. 400000 * 0.83 =…

Q: The balance of the credit line at yearend is:

A: The bank credit line as on September 30, 2020 is $25,300 and as it is the amount which Gibco Limited…

Q: On March 1, 20x1, ABC assigned its P4,000,000 accounts receivable to XYZ Bank in exchange for a…

A: Introduction The formula in computing the Equity on Assigned Accounts of ABC is shown below.  Equity…

Q: The Receivables account of Jennie Co. shows an amortized cost of $1,950,000 on December 31, 2019.…

A: Receivables:- These are the current assets for the company and receive within 1 year, it includes…

Q: n February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: 1) Computing the amount of cash initially to be received as follows:   Total Charges = (3% + 5%)…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Receivables is also known as accounts receivable which refers to the amount of debt owed to a firm…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Factoring is the technique where the accounts or note receivables has been sold by company to any…

Q: On December 31, 2020, the Reliable Finance Company had P5,000,000 notes receivable from Burgundy…

A: Impairment loss refers to the substantial decline in the carrying value of asset. It is calculated…

Q: At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Given Information: Receivables with a carrying amount = ₱300,000 Finance charges = 3% Retention for…

Q: On December 1, 2021, Wonder Company assigned P400,000 of accounts receivable to Woman Company as a…

A: Accounts receivable (AR) is the amount of cash yet to be received by a firm for products or services…