On June 30, 2021, CPA Company factored P2,500,000 of accounts receivable for P2,250,000.  The allowance for uncollectible accounts for these factored receivables was P50,000.  On December 1, 2021, CPA Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank.  CPA received the P2,000,000 less 2% finance charge based on the loan.   How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?

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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47. On June 30, 2021, CPA Company factored P2,500,000 of accounts receivable for P2,250,000.  The allowance for uncollectible accounts for these factored receivables was P50,000.

 On December 1, 2021, CPA Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank.  CPA received the P2,000,000 less 2% finance charge based on the loan.

 
How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?

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