ORANGE Co. factored ₱3,000,000 of accounts receivable without recourse. The factor required an assessment fee of 10% of the accounts factored and a holdback of 15% of the accounts factored for possible sales returns and allowances. The accounts factored had a related allowance for doubtful accounts of ₱200,000. What amount of loss on factoring should be recognized? A. ₱ 300,000 B. ₱ 650,000 C. ₱ 750,000 D. ₱ 100,000

ORANGE Co. factored ₱3,000,000 of accounts receivable without recourse. The factor required an assessment fee of 10% of the accounts factored and a holdback of 15% of the accounts factored for possible sales returns and allowances. The accounts factored had a related allowance for doubtful accounts of ₱200,000. What amount of loss on factoring should be recognized? A. ₱ 300,000 B. ₱ 650,000 C. ₱ 750,000 D. ₱ 100,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

See similar textbooks

Similar questions

At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
ORANGE Co. factored ₱3,000,000 of accounts receivable without recourse. The factor required an assessment fee of 10% of the accounts factored and a holdback of 15% of the accounts factored for possible sales returns and allowances. The accounts factored had a related allowance for doubtful accounts of ₱200,000. What amount of loss on factoring should be recognized?
Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these accounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to Php600,000?
ABE Company factored P100,000 of its accounts receivable to Cee Company for P85,000. An allowance for bad debts equal to P3,000 was previously established for the account factored. Cee Company withheld 5% of the purchase price as protection against sales returns and allowance. Determine the following assuming sale of receivable is without recourse or guarantee. 1. Cash received 2. Cost of factoring
ABE Company factored P100,000 of its accounts receivable to Cee Company for P85,000. An allowance for bad debts equal to P3,000 was previously established for the account factored. Cee Company withheld 5% of the purchase price as protection against sales returns and allowance. Determine the following assuming sale of receivable is with recourse. 1. Cash receivedAnswer 2. Cost of factoring
HIPIEE COMPANY sold P5,800,000 accounts receivable for cash of P5,000,000. The factor withheld 10% of cash proceeds to allow for possible customer returns and other adjustments. An allowance for bad debts of P600,000 had previously been established by HIPIEE Company in relation to these accounts. 1.What is the amount of loss on factoring if accounts is collected?
Abel Company sold accounts receivable without recourse with a face amount of P4,000,000. The factor charged a service fee of 10% of the accounts factored and withheld 5% of the accounts factored as protection against customer returns and other adjustments. Jazz previously established an allowance for doubtful accounts of 8% of the accounts factored. How much is the gain or loss on factoring?
Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12k in the allowance for doubtful accounts. If the companh estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expenses recognized for the year? a.) 390k b.) 378k c.) 402k d.) 1,440,000
The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation are P500,000 and P50,000. Net credit sales totaled P4,500,000 during the year while collections amounted to P4,400,000. Bad debts expense for the year is P30,000. Included in the collections was a P10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year? The answer is 520000. Explain how can we arrive at this answer.
19.Timothy Corp. had accounts receivable of P 150,000 and allowance for doubtful accounts of P 12,000 at the beginning of the period. During the period, Timothy Corp. made total sales of P 1,000,000 ( 40% were cash sales), collected P 9,000 a ccounts, recovered P 2,000 accounts, and recognized bad debts expense of P 15,000. How much is the carrying amount of accounts receivable at the end of the period? A.351,000 B.331,000 C.311,000 D.279,000 20.The current and noncurrent portions of Jonah Co.'s noninterest- bearing note receivable on Dec. 31, 2021 are P 127,104 and P 480,366, respectively. The note has a face amount of P 1,000,000, is dated Jann. 1, 2021 and is due 5 equal annual installments every Dec. 31. Jonah Co. reported interest income of P 86,515 in 2021 and P 72,896 in2022. How much is unamortized discount on the note on Dec. 31, 2023? * A.61,990 B.56,224 C.661,990 D.756,224
Mazda Company sold P5,800,000 in accounts receivable for cash of P5,000,000. The factor withheld 10% of the cash proceeds to allow for possible customer returns and other adjustments. An allowance for bad debts of P600,000 had previously been established by Mazda in relation to these accounts. What was the loss on factoring recognized by Mazda Company?