13. AAA has a receivable from Client QRC amounting to P850,000 with existing credit term of 10/45, n/60. This was used by AAA to avail financing from C19 Finance Corporation. Client QRC is one of AAA’s credible client for the longest time which is its basis why this account was assigned to the finance provider. C19 has only extend 85% of the amount with 2% finance fee based on the face receivable assigned. A monthly interest of 4% will be charged by on the outstanding obligation of AAA. As this transaction was completed, AAA notified the finance department of QRC to pay its account directly to C19. Assuming AAA sold merchandise to Client QRC on April 1, 20A and the assignment transaction was completed on April 15, 20A. If Client QRC has paid its entire receivables availing the discount, of the amount received by the bank, which of the following entries is not found when the AAA was notified of the collection and the excess cash was received? a. Dr. Sales discount 85,000 b. Loan payable 680,000 c. Cr. Accounts receivable 850,000 d. Dr. Cash 82,733 e. Interest expense 2,26
13. AAA has a receivable from Client QRC amounting to P850,000 with existing credit term of 10/45, n/60. This was used by AAA to avail financing from C19 Finance Corporation. Client QRC is one of AAA’s credible client for the longest time which is its basis why this account was assigned to the finance provider. C19 has only extend 85% of the amount with 2% finance fee based on the face receivable assigned. A monthly interest of 4% will be charged by on the outstanding obligation of AAA. As this transaction was completed, AAA notified the finance department of QRC to pay its account directly to C19. Assuming AAA sold merchandise to Client QRC on April 1, 20A and the assignment transaction was completed on April 15, 20A. If Client QRC has paid its entire receivables availing the discount, of the amount received by the bank, which of the following entries is not found when the AAA was notified of the collection and the excess cash was received?
a. Dr. Sales discount 85,000
b. Loan payable 680,000
c. Cr.
d. Dr. Cash 82,733
e. Interest expense 2,26
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