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At the beginning of July, MedLab Inc. assigned P2,000,000 out accounts reccivable to BPI in consideration of a P1,400,000, 12% loa of the loan principal as scrvice charge. By the end of July, McdLab ce assigned accounts net of a P50,000 sales discount. Also, by the end customer return of merchandise amounting to P60,000. By the end of August, MedLab collected another P700,000 from the a sales discount. The company also wrote-off P80,000 as worthless ac By the cnd of September, MedLab collected another P300,000 without

At the beginning of July, MedLab Inc. assigned P2,000,000 out accounts reccivable to BPI in consideration of a P1,400,000, 12% loa of the loan principal as scrvice charge. By the end of July, McdLab ce assigned accounts net of a P50,000 sales discount. Also, by the end customer return of merchandise amounting to P60,000. By the end of August, MedLab collected another P700,000 from the a sales discount. The company also wrote-off P80,000 as worthless ac By the cnd of September, MedLab collected another P300,000 without

Intermediate Accounting: Reporting And Analysis
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 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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How much is the remittance of MedLab Inc. to the bank by the end of September? 

At the beginning of July, MedLab Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts reccivable to BPI in consideration of a P1,400,000, 12% loan. BPI charged the company 5% of the loan principal as servicc charge. By thc end of July, MedLab 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 merchandisc amounting to P60,000. By the end of August, MedLab 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, MedLab 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.
Transcribed Image Text:At the beginning of July, MedLab Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts reccivable to BPI in consideration of a P1,400,000, 12% loan. BPI charged the company 5% of the loan principal as servicc charge. By thc end of July, MedLab 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 merchandisc amounting to P60,000. By the end of August, MedLab 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, MedLab 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.
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