Assigning Accounts Receivable. Black Corporation has entered into a long- erm assignment agreement with a finance company. Under the terms of this ngreement, Black receives 80% of the value of all accounts assigned and is charged a 1% service charge which is based upon the actual peso amount of cash received. Additionally, the finance company charges Black 12% annual nterest on the outstanding loan. The following selected transactions relate to his agreement: Accounts receivable of P175,000 are assigned. A sales return of P1,000 on an assigned account is allowed by Black. Collections are made on P86,000 of assigned accounts. This amount and I month's interest on the outstanding loan are remitted to the finance company. (For simplicity, compute interest to the December 1, 20xs December 11, 20xs December 31, 20X5

Assigning Accounts Receivable. Black Corporation has entered into a long- erm assignment agreement with a finance company. Under the terms of this ngreement, Black receives 80% of the value of all accounts assigned and is charged a 1% service charge which is based upon the actual peso amount of cash received. Additionally, the finance company charges Black 12% annual nterest on the outstanding loan. The following selected transactions relate to his agreement: Accounts receivable of P175,000 are assigned. A sales return of P1,000 on an assigned account is allowed by Black. Collections are made on P86,000 of assigned accounts. This amount and I month's interest on the outstanding loan are remitted to the finance company. (For simplicity, compute interest to the December 1, 20xs December 11, 20xs December 31, 20X5

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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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?
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Black Corporation has entered into a long-term assignment agreement with a finance company. Under the terms of this agreement, Black receives 80% of the value of all accounts assigned and is charged a 1% service charge which is based upon the actual peso amount of cash received. Additionally, the finance company charges Black 12% annual interest on the outstanding loan. The following selected transactions relate to this agreement: December 1, 2014 - Accounts receivable of P175,000 are assigned. December 11, 2014 - A sales return of P1,000 on an assigned account is allowed by Black. December 31, 2014 - Collections are made on P86,000 of assigned accounts. This amount and 1 month's interest on the outstanding loan are remitted to the finance company. (For simplicity, compute interest to the nearest month). January 29, 2016 - P60,000 of assigned accounts are collected and the remainder of the loan is repaid. What is the journal entry to record the January 29, 2016 payment of the…
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You have the following transaction during the year of 2020 as related to Steve company: 1. On the 1* of October, the company accepted a 5 month, 7%, note as a settlement of 70,000 uncollected previous accounts. 2. On the 15th of November the company accepted a 120 days, 10%, note in exchange for services provided total of 10,000. 3. On the 31* of December the company granted a loan for a client total of 60,000 by accepting a note that due in 3 years offering 12%. Answer the following: What is the maturity date of the first note What is the maturity date of the second note What is the maturity date of the third note What is the journal entry to be recorded as related to the first note at the maturity date assuming the note is honored What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and after negotiations with the client he agree to pay after 1 year What is the journal entry to be recorded as related to the second…
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