LOL Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables? A. PO B. P240,000 loss C. P100.000 gain D. P150,000 gain
LOL Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables? A. PO B. P240,000 loss C. P100.000 gain D. P150,000 gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LOL Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5%
loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the
transaction and is paid up front. What amount should be recorded as a gain or loss on the
transfer of accounts receivables?
A. PO
B. P240,000 loss
C. P100.000 gain
D. P150,000 gain
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