AccountingA Corp. required additional cash for its operation and used its accountsreceivable to raise such needed cash, as follows:On December 1, 2021, A Corp. assigned on a non-notification basis accountsreceivable of P10,000,000 to a bank in consideration for a loan of 60% of thereceivables less a 1% service fee on the accounts assigned. A signed a note forthe bank loan.On December 31, 2021, A collected assigned accounts of P5,000,000 lessdiscount of P100,000. A remitted the collections to the bank in partial paymentfor the loan. The bank applied first the collection to the interest and the balanceto the principal. The agreed interest is 2% per month on the loan balance.A received an advance of P400,000 from Job Financial Co. by pledgingP500,000 of accounts receivable. The loan is due in five years.On December 31, 2021, A discounted at a bank a customer's P3,000,000, 1 year,10% note receivable dated April 30, 2021. The bank discounted the note at 15%on the same date.How much did A receive from the discounting of notes receivable?

Accounts receivables are the sales made on credit that are outstanding as a current asset on the…

Answered: How much did A receive from the…

Business

Accounting

How much did A receive from the discounting of notes receivable?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

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