2. On October 31, 2020, SnickersCompany engaged in the followingtransactions: (1) Obtained aP500,000, six-month loan from CityBank, discounted at 12%. Thecompany pledged P500,000 ofaccounts receivables as security forthe loan. (2) Factored P1,000,000 oaccounts receivable withoutrecourse on a non-notification basiswith Twix Company. Twix charged afactoring fee of 2% of the amount oaccounts receivables factored andwithheld 10% of the amountfactored. What is the total cashreceived from the financing ofreceivables? *P 1,350,000P 1,470,000P 1,320,000P 1,380,000

Name: 2. On October 31, 2020, SnickersCompany engaged in the followingtrans
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Description: 2. On October 31, 2020, SnickersCompany engaged in the followingtransactions: (1) Obtained aP500,000, six-month loan from CityBank, discounted at 12%. Thecompany pledged P500,000 ofaccounts receivables as security forthe loan. (2) Factored P1,000,00

Loan is the amount that an individual, company, or corporation owed for financing its activities and…

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factored. What is the total cash received from the financing of receivables?

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 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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