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Sam Company entered into an assignment arrangement with Easy Bank whereby the assignee would advance 80% of all accounts assigned less P2,000 service charge.   During the year, P400,000 of accounts receivable were assigned; P250,000 collections were made on these assigned accounts which were remitted to Easy Bank to apply first to P3,200 interest and the balance to principal.  Sales returns and allowances on assigned accounts amounted to P5,000. After considering all of the foregoing transactions, how much is Sam Company's equity in assigned accounts disclosed in the notes to the financial statements?

Sam Company entered into an assignment arrangement with Easy Bank whereby the assignee would advance 80% of all accounts assigned less P2,000 service charge.   During the year, P400,000 of accounts receivable were assigned; P250,000 collections were made on these assigned accounts which were remitted to Easy Bank to apply first to P3,200 interest and the balance to principal.  Sales returns and allowances on assigned accounts amounted to P5,000. After considering all of the foregoing transactions, how much is Sam Company's equity in assigned accounts disclosed in the notes to the financial statements?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
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Sam Company entered into an assignment arrangement with Easy Bank whereby the assignee would advance 80% of all accounts assigned less P2,000 service charge.   During the year, P400,000 of accounts receivable were assigned; P250,000 collections were made on these assigned accounts which were remitted to Easy Bank to apply first to P3,200 interest and the balance to principal.  Sales returns and allowances on assigned accounts amounted to P5,000.

After considering all of the foregoing transactions, how much is Sam Company's equity in assigned accounts disclosed in the notes to the financial statements?

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