Presented below are the receivables of One Time Big Time Corporation as of December 31, 2018. Mr. A - Accounts receivable (180 days past due) 70,000 Mr. B - Accounts receivable assigned to the accounts payable to a supplier. 30,000 Mr. C - Accounts receivable factored to a financing company without recourse. 60,000 Mr. D - Note receivable discounted at a bank. 20,000 Mr. E - Note receivable from customer, dishonored. 15,000 Mr. F - President of the Company, advances for personal use. 12,000 Mr. G - Proven worthless accounts. 8,000 Mr. H - Customer with credit balance. (5,000) Other Trade Accounts Receivables (P30,000 of which are pledged against a loan from X Bank.) 200,000 Additional information: The allowance for doubtful account has a credit balance of P10,000 at the beginning of the year. Based on aging of receivables, the required allowance for doubtful account will be P20,000. The accounts receivable from Mr. C was factored at 85% plus P25,000 factoring fee. The note receivable was discounted at 18% on December 1, 2018. This is a 6-month, 10% note dated November 1, 2018. How much is the proceeds from factoring? How much is the proceed from discounting? How much is the account receivable balance?
Presented below are the receivables of One Time Big Time Corporation as of December 31, 2018.
|
Mr. A - |
70,000 |
|
Mr. B - Accounts receivable assigned to the accounts payable to a supplier. |
30,000 |
|
Mr. C - Accounts receivable factored to a financing company without recourse. |
60,000 |
|
Mr. D - Note receivable discounted at a bank. |
20,000 |
|
Mr. E - Note receivable from customer, dishonored. |
15,000 |
|
Mr. F - President of the Company, advances for personal use. |
12,000 |
|
Mr. G - Proven worthless accounts. |
8,000 |
|
Mr. H - Customer with credit balance. |
(5,000) |
|
Other Trade Accounts Receivables (P30,000 of which are pledged against a loan from X Bank.) |
200,000 |
Additional information:
The allowance for doubtful account has a credit balance of P10,000 at the beginning of the year. Based on aging of receivables, the required allowance for doubtful account will be P20,000.
The accounts receivable from Mr. C was factored at 85% plus P25,000 factoring fee.
The note receivable was discounted at 18% on December 1, 2018. This is a 6-month, 10% note dated November 1, 2018.
- How much is the proceeds from factoring?
- How much is the proceed from discounting?
- How much is the account receivable balance?
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