2. Account Receivable and Factoring Finance In order to resolve its cash flow problems, PT. Terang Bulan (TB) assigned Rp1. 20 billion of its accounts receivable as Bank BCA- Factoring Division (BCA Factoring) on August 1, 2020. TB received 85% of the assigned accounts receivable less a service charge on 2% of the cash received. TB was also charged 13% interest annually on the outstanding loan balance. By August 31, TB had collected Rp 760 million, and remitted this plus the interest to date to BCA-Factoring. Required: a. Prepare journal entries to record the above assignment transactions on TB's books. b. If TB collected an additional Rp200 million on outstanding accounts and remitted this to BCA- Factoring on 30 Sept 2020, how much interest must be paid in addition? C. Prepare the account receivable section that would appear on the 3rd quarter interim balance sheet (per 30 Sept). Include all transactions that have been described in the problem.

2. Account Receivable and Factoring Finance In order to resolve its cash flow problems, PT. Terang Bulan (TB) assigned Rp1. 20 billion of its accounts receivable as Bank BCA- Factoring Division (BCA Factoring) on August 1, 2020. TB received 85% of the assigned accounts receivable less a service charge on 2% of the cash received. TB was also charged 13% interest annually on the outstanding loan balance. By August 31, TB had collected Rp 760 million, and remitted this plus the interest to date to BCA-Factoring. Required: a. Prepare journal entries to record the above assignment transactions on TB's books. b. If TB collected an additional Rp200 million on outstanding accounts and remitted this to BCA- Factoring on 30 Sept 2020, how much interest must be paid in addition? C. Prepare the account receivable section that would appear on the 3rd quarter interim balance sheet (per 30 Sept). Include all transactions that have been described in the problem.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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