On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six month loan from BDO, discounted at 12%. The company pledged P500, 000 of accounts receivable as security for the loan. Factored P1, 000 000 of accounts receivable without recourse on a non notification basis with Meow Company. Meow charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables? * a. 1 320 000 b. 1 350 000 c. 1 380 000 d. 1 470 000

On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six month loan from BDO, discounted at 12%. The company pledged P500, 000 of accounts receivable as security for the loan. Factored P1, 000 000 of accounts receivable without recourse on a non notification basis with Meow Company. Meow charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables? * a. 1 320 000 b. 1 350 000 c. 1 380 000 d. 1 470 000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On October 31, 2021 T Company engaged in the following transactions: [1] Obtained a P500,000, 6-month loan from BDO, discounted at 12%. The company pledged P600,000 of accounts receivable as security for the loan. [2] Factored P1,000,000 of accounts receivable without recourse on a notification basis with Home Credit Company. Home Credit charged a factoring fee of 5% of the amount of receivables factored and withheld 10% of the receivables factored. 1. What is the total cash received from the financing of receivables? 2.What is the amount of loss?
The following transactions relate to A Inc. in 2020: Aug 1: Assigned P6,000,000 of accounts receivable to P. Ocampo Bank under a non-notification basis. The bank advanced 75% of the face value of the receivables less a service charge of P2,500. A signed a promissory note agreeing to pay monthly interest of 1% of the unpaid balance of the loan. Aug. 4: Issued a P60,000 credit memo for sales allowance granted to a customer whose account was assigned Aug 9. : Collected 50% of the face value of the assigned accounts. Sales discounts of 3% were granted to 60% of the face value of the collected accounts Aug. 20: Remitted the collection to P. Ocampo along with the monthly Aug. interest. The payment of the monthly interest was paid first out of the collection of assigned accounts receivable. What is the equity on the assigned accounts, as of August 31, 2020?
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On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of Php.6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for a bank loan. On December 31, 2020, the entity collected assigned accounts of Php.2,000,000 less discount of Php.200,000. The entity remittted the collections to the bank in partial payment for the loan. The bank applied first the collection to the to the interests and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,00 on the assigned accounts and wrote off assigned accounts totaling Php.300,000. What is the equity of the assignor in assigned accounts on December 31, 2020?
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On October 31, 2021, Bundle Company engaged in the following transactions: (1) Obtained a P500,000, six-month loan from City Bank, discounted at 12%. The company pledged P500,000 of accounts receivable as security for the loan. What is the total cash received from the financing of receivables?
On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration of a loan 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. What is the balance of accounts receivable assigned on December 31, 2020? What is the carrying amount of the note payable on December 31, 2020? what is the equity of the assignor in assigned accounts on December 31, 2020?
On December 1, 2020, Lush Soma Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000, 12% note from BNP bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance of the assigned accounts. The December collection of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the Company remitted the collections on the bank in payment for the interest earned on December 31, 2020 and the note payable. The entity accepted sales returns of 100,000 on the assigned notes and wrote off assigned accounts of 30,000. 1.What amount of cash received from the assignment of accounts receivable? 2.What is the carrying amount of note payable on December 31, 2020? 3.What amount should be disclosed as equity of assigned accounts as of December 31, 2020?