Wanda Company sold accounts receivable without recourse for P8,200,000. The company received P8,000,000 cash immediately from the factor. The remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts. What amount of loss on factoring should be recognized?
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- Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?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?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?
- ABC Corporation uses the cash basis of accounting. Damalerio collected P1,400,000 from its customers during the year. Damalaerio had P100,000 in Accounts receivable at the beginning of the year, and P180,000 in Accounts receivable at the end of the year. The company also had P40,000 and P50,000 of allowance for bad debts at the beginning and at the end of the year, respectively. What is ABC Corp's Sales Revenue under accrual basis of accounting assuming that company had sales discount amounting to P50,000 and sales returns (all before collections) amounting to P70,000. 1,480,000 1,530,000 1,550,000 1,600,000ABE 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 factoring39. Haru Company sold accounts receivable without recourse for P10, 600,000. Mild company received P10, 000,000 cash immediately from the factor. The remaining P600, 000 will be received once the factor verifies that none of the accounts receivable is in dispute. The accounts receivable had a face amount of P12, 000,000. Mild company had previously established an allowance for bad debts of P500, 000 in connection with these accounts. How much is the loss on factoring?
- ABC Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, the company factored P2,000,000 of its accounts receivable to XYZ Finance Company. Purchase price was 85% of the receivable factored. XYZ withheld 5% of the. purchase price as protection against sales returns and allowances. What was the net cash received by ABC from this factored accounts? A. P1,600,000 B. P2,385,000 C. P1.615,000 D. 2,015,000ABE 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 factoringCompany sold accounts receivable without recourse for 6,100,000. The entity received 4,000,000 cash immediately from the factor. The remaining 275,000 will be received once the factor verifies that none of the account receivable is in dispute. The accounts receivable had a face amount of 5,200,000. The entity had previously established an allowance for bad debts of 230,000 in connection with such accounts. What amount of loss on factoring should be recognized? A. 925,000 b. 295,000 c. 695,000 d. 965,000
- Lazard Corporation has experienced cash flow problems and decides to improve its current cash position by factoring 30% of its receivables, without recourse, and assigning the remainder with the same finance company. The factored receivables meet the conditions for a sale while the assigned receivables do not. The agreement with the finance company stipulates that a 10% commission will be assessed on factored accounts, no service charge is assessed on the assigned accounts, and 15% annual interest will be charged on the outstanding note payable balance related to the assigned accounts. Additionally, the finance company will advance only 80% of the factored and assigned accounts, and Lazard must continue the collection responsibilities on the assigned accounts. At the beginning of the last month of the company’s fiscal year, the accounts receivable transferred to the finance company amounted to $187,000. During the month, collections on factored accounts were $46,000, and collections on…During the second year of operations, Rabbit Company found itself in financial difficulties. The entitydecided to use the accounts receivable as a means of obtaining cash to continue operation.On July 1, 2022, the entity sold P1,500,000 of accounts receivable for cash proceeds of P1,400,000. Noallowance for doubtful accounts was associated with these accounts.On December 15, 2022, the entity assigned the remainder of its accounts receivable, P5,000,000 as ofthat date, as collateral on a P2,500,000, 12% annual interest rate loan from Finance Company. The entityreceived P2,500,000 less a 2% finance charge.None of the assigned accounts have been collected by the end of the year. It is estimated that 10% ofaccounts receivable would be uncollectible.The entity revealed the following data on December 31, 2022. Accounts Receivable, excluding factored and assigned ACCOUNTS 1,000,000 Accounts receivable -assigned 5,000,000 Accounts receivable – factored 1,500,000 Allowance for doubtful…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?