Homework Help is Here – Start Your Trial Now!
Business
Accounting
On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six month loan from BDO, discounted at 12%. The company pledged P500, 000 of accounts receivable as security for the loan. Factored P1, 000 000 of accounts receivable without recourse on a non notification basis with Meow Company. Meow charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables? * a. 1 320 000 b. 1 350 000 c. 1 380 000 d. 1 470 000

On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six month loan from BDO, discounted at 12%. The company pledged P500, 000 of accounts receivable as security for the loan. Factored P1, 000 000 of accounts receivable without recourse on a non notification basis with Meow Company. Meow charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables? * a. 1 320 000 b. 1 350 000 c. 1 380 000 d. 1 470 000

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 3P
See similar textbooks
icon
Related questions
Question

On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six month loan from BDO, discounted at 12%. The company pledged P500, 000 of accounts receivable as security for the loan. Factored P1, 000 000 of accounts receivable without recourse on a non notification basis with Meow Company. Meow charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables? *

a. 1 320 000

b. 1 350 000

c. 1 380 000

d. 1 470 000

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SEE MORE TEXTBOOKS