At the beginning of July, ABC assigned P2,000,000 out of its P10,000,000 outstanding accounts receivable to BDOin consideration of a P1,400,000, 12% loan. BDO charged the company 5% of the loan principal as a service charge. By the end of July, ABC collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of July, the company accepted a customer return of merchandise amounting to P60,000. By the end of August, ABC collected another P700,000 from the assigned accounts after P40,000 sales discount. The company also wrote off P80,000 as worthless accounts by the end of August. By the end of September, ABC collected another P300,000 without sales discounts. The agreement with the bank provides a monthly remittance from customer collections and it will cover both the principal and interest. How much is the remittance of ABC to BDO by the end of September?
At the beginning of July, ABC assigned P2,000,000 out of its P10,000,000 outstanding
By the end of August, ABC collected another P700,000 from the assigned accounts after P40,000 sales discount. The company also wrote off P80,000 as worthless accounts by the end of August.
By the end of September, ABC collected another P300,000 without sales discounts. The agreement with the bank provides a monthly remittance from customer collections and it will cover both the principal and interest.
How much is the remittance of ABC to BDO by the end of September? *
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