ABC Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, the company factored P2,000,000 of its accounts receivable to XYZ Finance Company. Purchase price was 85% of the receivable factored. XYZ withheld 5% of the. purchase price as protection against sales returns and allowances. What was the net cash received by ABC from this factored accounts? A. P1,600,000 B. P2,385,000 C. P1.615,000 D. 2,015,000
ABC Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, the company factored P2,000,000 of its accounts receivable to XYZ Finance Company. Purchase price was 85% of the receivable factored. XYZ withheld 5% of the. purchase price as protection against sales returns and allowances. What was the net cash received by ABC from this factored accounts? A. P1,600,000 B. P2,385,000 C. P1.615,000 D. 2,015,000
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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ABC Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, the company factored P2,000,000 of its accounts receivable to XYZ Finance Company. Purchase price was 85% of the receivable factored. XYZ withheld 5% of the. purchase price as protection against sales returns and allowances. What was the net cash received by ABC from this factored accounts?
A. P1,600,000
B. P2,385,000
C. P1.615,000
D. 2,015,000
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