ABC Company factored ₱3,500,000 of accounts receivable with a finance company. The factoring fee was 3% of the accounts purchased. The finance company withheld 10% of the purchase price to cover sales discounts, returns and allowances. 1. What amount of cash was received on the factoring of accounts receivable? 2. What amount should be recognized as loss on factoring?

ABC Company factored ₱3,500,000 of accounts receivable with a finance company. The factoring fee was 3% of the accounts purchased. The finance company withheld 10% of the purchase price to cover sales discounts, returns and allowances. 1. What amount of cash was received on the factoring of accounts receivable? 2. What amount should be recognized as loss on factoring?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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