CPA Co. is bothered about its cash position as collections of receivables are delayed and its obligations are currently maturing. On December 31 of the current year, the entity has the following accounts: Accounts receivable of P800,000 and allowance for doubtful accounts of P80,000. Because of its critical cash position, the entity factored (under casual factoring) its accounts, receivable. The factor charged 15% commission on all accounts receivable and withheld 10% of the accounts factored as protection against customer returns and other adjustments. How much of these receivables will be presented in the statement of financial position?

CPA Co. is bothered about its cash position as collections of receivables are delayed and its obligations are currently maturing. On December 31 of the current year, the entity has the following accounts: Accounts receivable of P800,000 and allowance for doubtful accounts of P80,000. Because of its critical cash position, the entity factored (under casual factoring) its accounts, receivable. The factor charged 15% commission on all accounts receivable and withheld 10% of the accounts factored as protection against customer returns and other adjustments. How much of these receivables will be presented in the statement of financial position?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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