Assigning Accounts Receivable. Black Corporation has entered into a long- erm assignment agreement with a finance company. Under the terms of this ngreement, Black receives 80% of the value of all accounts assigned and is charged a 1% service charge which is based upon the actual peso amount of cash received. Additionally, the finance company charges Black 12% annual nterest on the outstanding loan. The following selected transactions relate to his agreement: Accounts receivable of P175,000 are assigned. A sales return of P1,000 on an assigned account is allowed by Black. Collections are made on P86,000 of assigned accounts. This amount and I month's interest on the outstanding loan are remitted to the finance company. (For simplicity, compute interest to the December 1, 20xs December 11, 20xs December 31, 20X5

Assigning Accounts Receivable. Black Corporation has entered into a long- erm assignment agreement with a finance company. Under the terms of this ngreement, Black receives 80% of the value of all accounts assigned and is charged a 1% service charge which is based upon the actual peso amount of cash received. Additionally, the finance company charges Black 12% annual nterest on the outstanding loan. The following selected transactions relate to his agreement: Accounts receivable of P175,000 are assigned. A sales return of P1,000 on an assigned account is allowed by Black. Collections are made on P86,000 of assigned accounts. This amount and I month's interest on the outstanding loan are remitted to the finance company. (For simplicity, compute interest to the December 1, 20xs December 11, 20xs December 31, 20X5

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 9P

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