ABC Company showed the following balances on December 31, 2021:Accounts receivableP4,000,000Allowance for doubtful accounts- credit120,000The following transactions transpired for ABC Company during the year 2021:o On May 1, received a P600,000, six-month, 12% interest bearing note from CD, a customer, in settlement of an account.o On June 30, factored P800,000 of its accounts receivable to a finance company. The finance company charged a factoringfee of 5% of the accounts factored and withheld 20% of the amount factored.On August 1, ABC Company discounted the CD note at the bank at 15%.On November 1, CD defaulted on the P600,000 note. ABC Company paid the bank the total amount due plus a P24,000protest fee and other bank charges.On December 31, ABC Company assigned P1,200,000 of its accounts receivable to a bank under non-notification basis. Thebank advanced 80% less service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.On December 31, ABC collected from CD in full including interest on total amount due at 12% since default date.o On December 31, it is estimated that 8% of the outstanding accounts receivable may prove uncollectible.Based on the foregoing information, answer the following: (Note: Use at least 4 decimal places, if needed.)1. How much was received on June 30 factoring?2. How much was received on August 1 discounting?3. How much was paid on November 1 default on the P600,000 note?4. How much was received on December 31 assignment of accounts receivable?5. How much was received on December 31 collection of the account on CD?6. How much is the net realizable of the accounts receivable of ABC Company on December 31, 2021?

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On December 31, it is estimated that 8% of the outstanding accounts receivable may prove uncollectible. ased on the foregoing information, answer the following: (Note: Use at least 4 decimal places, if needed.) 1. How much was received on June 30 factoring? 2. How much was received on August 1 discounting? 3. How much was paid on November 1 default on the P600,000 note? 4. How much was received on December 31 assignment of accounts receivable? 5. How much was received on December 31 collection of the account on CD? 6. How much is the net realizable of the accounts receivable of ABC Company on December 31, 2021?

On December 31, it is estimated that 8% of the outstanding accounts receivable may prove uncollectible. ased on the foregoing information, answer the following: (Note: Use at least 4 decimal places, if needed.) 1. How much was received on June 30 factoring? 2. How much was received on August 1 discounting? 3. How much was paid on November 1 default on the P600,000 note? 4. How much was received on December 31 assignment of accounts receivable? 5. How much was received on December 31 collection of the account on CD? 6. How much is the net realizable of the accounts receivable of ABC Company on December 31, 2021?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
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