ABC Company factored ₱3,500,000 of accounts receivable with a finance company. The factoring fee was 3% of the accounts purchased. The finance company withheld 10% of the purchase price to cover sales discounts, returns and allowances. 1. What amount of cash was received on the factoring of accounts receivable? 2. What amount should be recognized as loss on factoring?

ABC Company factored ₱3,500,000 of accounts receivable with a finance company. The factoring fee was 3% of the accounts purchased. The finance company withheld 10% of the purchase price to cover sales discounts, returns and allowances. 1. What amount of cash was received on the factoring of accounts receivable? 2. What amount should be recognized as loss on factoring?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 1CE

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