How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? *P 1,800,000; 211,500P 1,548,000; 306,000P 1,588,500; P 319,500P 1,584,000; P 306,000P 1,588,500; P 324,000P 1,584,000; P 216,000 On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to thebank. The bank charged the company 8.46% of the accounts receivable pledged as service chargededucted from the amount borrowed.

Solution: Service charges for pledging accounts receivables = P2,500,000*8.46% = P211,500 Amount…

How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? * P 1,800,000; 211,500 P 1,548,000; 306,000 P 1,588,500; P 319,500 P 1,584,000; P 306,000 P 1,588,500; P 324,000 P 1,584,000; P 216,000

How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? * P 1,800,000; 211,500 P 1,548,000; 306,000 P 1,588,500; P 319,500 P 1,584,000; P 306,000 P 1,588,500; P 324,000 P 1,584,000; P 216,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Question

How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? *

P 1,800,000; 211,500

P 1,548,000; 306,000

P 1,588,500; P 319,500

P 1,584,000; P 306,000

P 1,588,500; P 324,000

P 1,584,000; P 216,000

On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of
12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the
bank. The bank charged the company 8.46% of the accounts receivable pledged as service charge
deducted from the amount borrowed.

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