On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for a 2-month, 12% loan equal to 75% of the assigned receivables. ASG Co. received the loan proceeds after a 1.5% deduction for service fee based on the assigned notes. During March, P500,000 were collected from the receivables. Sales returns and discounts amounted to P150,000. How much net cash is received from the assignment transaction on March 1, 2016?

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 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for
a 2-month, 12% loan equal to 75% of the assigned receivables. ASG Co. received the loan proceeds
after a 1.5% deduction for service fee based on the assigned notes. During March, P500,000 were
collected from the receivables. Sales returns and discounts amounted to P150,000. How much net
cash is received from the assignment transaction on March 1, 2016?
Transcribed Image Text:On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for a 2-month, 12% loan equal to 75% of the assigned receivables. ASG Co. received the loan proceeds after a 1.5% deduction for service fee based on the assigned notes. During March, P500,000 were collected from the receivables. Sales returns and discounts amounted to P150,000. How much net cash is received from the assignment transaction on March 1, 2016?
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