QUESTION 3On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on awww250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assignedreceivables. CIMB Bank will charge 2% as a fimance charge which will be deducted in advanceon the 250,000 value of the note. Collections of receivables for September is RM100,000,lesscash discounts of RM800. On 1 October, ABC Bhd paid to the bank the amount owed forSeptember collection plus accrued interest. During October, ABC Bhd collected the remainingaccounts except for RM550 written off as uncollectible. On 1 November, ABC Bhd paid toCIMB Bank the remaining account owed plus accrued interest.REQUIRED:Prepare the joumal entries necessary for both ABC Bhd and CIMB Bank.

Journal entries refers to reporting of business transaction into the books of the entity as well as…

On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fmance charge which will be deducted in advance on the 250,000 value of the note. Collections of receivables for September is RM100,000,les: cash discounts of RM800. On 1 October, ABC Bhd paid to the bank the amount owed fo September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED:

On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fmance charge which will be deducted in advance on the 250,000 value of the note. Collections of receivables for September is RM100,000,les: cash discounts of RM800. On 1 October, ABC Bhd paid to the bank the amount owed fo September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tagum Inc. required additional cash for its operation and used accounts receivable to raise such needed cash, as follows: On December 1, 2021 Tagum Inc. assigned on a non-notification basis accounts receivable of P 5,000,000 to a bank in consideration for a loan of 90% of the receivables less 5% service fee on the accounts assigned. Tagum Inc. signed a note for the bank loan. On December 31, 2021, Tagum Inc. collected assigned accounts of P 3,000,000 less discount of P 200,000. Tagum Inc. remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. Tagum Inc. sold P 1,550,000 of accounts receivable for P 1,340,000 . The receivables had a carrying amount of P 1,470,000 and were sold outright on a nonrecourse basis. Tagum Inc. received an advance of P 300,000 from Union Bank by pledging P 360,000 of accounts receivable On June 30,…
Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for periods 3.99 What amount of interests income should be reported for 2022?
The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. All other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis? *
On January 1, 2021, The Corporation sold goods to Adobo Company. Adobo signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021.The prevailing rate of interest for this type of note at date of issuance was 10%.· PV of an ordinary annuity of 1 at 10% for 6 period- 4.36· PV of an ordinary annuity of 1 at 10% for 7 period- 4.87What is the carrying amount of the note receivable on January 1, 2021?
Please answer the question correctly. Thank you.
47. On June 30, 2021, CPA Company factored P2,500,000 of accounts receivable for P2,250,000. The allowance for uncollectible accounts for these factored receivables was P50,000. On December 1, 2021, CPA Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank. CPA received the P2,000,000 less 2% finance charge based on the loan. How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?
On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. What is the equity of the assignor in assigned accounts on December 31, 2020?
See the attached photo for the problem Required: a. Compute the total current liabilities on December 31, 2020 b. Determine the interest expense to be reported in 2020.
On January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021.The prevailing rate of interest for this type of note at date of issuance was 10%.· PV of an ordinary annuity of 1 at 10% for 6 period- 4.36· PV of an ordinary annuity of 1 at 10% for 7 period- 4.87What is the carrying amount of the note receivable on January 1, 2021?
An invoice dated 15th March 2021 for RM750 was paid on the 31st March 2021. If the trade discount was 15% and the cash discount terms were 8/10, 5/30 and n/30, find:a) The trade discount offered.b) The cash discount offered.c) The amount paid.
LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an electrical generator costing ₱ 700,000 for ₱ 1,000,000. The buyer paid ₱100,000 down and signed a ₱ 900,000 non-interest bearing note payable in three equal installments starting May 31, 2021. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the Interest income for the year ending December 31, 2021?
, r.T.Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was RM100,000 on 31 Dec 2018. He decided to wite off 10% of the receivables as the Allowance for Doubtful Debts for the year ending 31 Dec 2018. The Trade Receivables was RM 200,000 in the year 2019 and RM 150,000 in the year 2020. The rate remained at 5%. Required : c) Prepare a Doubtful Debts account for the year 2018, 2019 and 2020 d) Prepare a Provision for Doubtful Debts account for the year 2018, 2019 and 2020