Answered: assigned account. On December 31,…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.1BE: Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a...

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Problem 17

On November 30, accounts receivable in the amount of P900,000 were assigned to Lopez Finance Co. by Llido as security for a loan of P750,000. Lopez charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Llido collected P350,000 on assigned accounts after deducting P560 of discounts. Llido wrote off a P530 assigned account. On December 31, Llido remitted to Lopez the amount collected plus one month's interest on the note.

How much is Llido’s equity in the assigned accounts receivable as of December 31?

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