At the beginning of July, Bartleby Graduate Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivable to BPI in consideration of a P1,500,000, 12% loan. BPI charged the company 5% of the loan principal as service charge. By the end of July, Bartleby Graduate Inc. 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, Bartleby Graduate Inc. collected another P682,000 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, Bartleby Graduate Inc. 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.

At the beginning of July, Bartleby Graduate Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivable to BPI in consideration of a P1,500,000, 12% loan. BPI charged the company 5% of the loan principal as service charge. By the end of July, Bartleby Graduate Inc. 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, Bartleby Graduate Inc. collected another P682,000 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, Bartleby Graduate Inc. 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.

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 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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