On December 1, 2020, ABC Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000, 12% note from certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the assigned accounts. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P100,000 on the assigned accounts and wrote off assigned accounts of P300,000. Compute for the amount of cash received from the assignment of accounts receivable on December 1, 2020. * On December 1, 2020, ABC Company assigned specific accounts receivabletotaling P5,000,000 as collateral on a P4,000,000, 12% note from certain bank.The entity will continue to collect the assigned accounts receivable. In addition tothe interest on the note, the bank also charged a 5% finance fee deducted inadvance on the assigned accounts. The December collections of assignedaccounts receivable amounted to P2,000,000 less cash discount of P200,000.On December 31, 2020, the entity remitted the collections to the bank inpayment for the interest accrued on December 31, 2020 and the note payable.The entity accepted sales returns of P100,000 on the assigned accounts andwrote off assigned accounts of P300,000. Compute for the amount of cashreceived from the assignment of accounts receivable on December 1, 2020. *Your answerNre to search

The amount of cash received is determined after deduction of finance fees @ 5% on accounts…

Answered: On December 1, 2020, ABC Company…

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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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On December 1, 2020, ABC Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000, 12% note from certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the assigned accounts. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P100,000 on the assigned accounts and wrote off assigned accounts of P300,000. Compute for the amount of cash received from the assignment of accounts receivable on December 1, 2020. *

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