At the beginning of July, Bartleby Graduate Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivable to BPI in consideration of a P1,500,000, 12% loan. BPI charged the company 5% of the loan principal as service charge. By the end of July, Bartleby Graduate Inc. collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of July, the company accepted a customer return of merchandise amounting to P60,000. By the end of August, Bartleby Graduate Inc. collected another P682,000 from the assigned accounts after P40,000 sales discount. The company also wrote-off P80,000 as worthless accounts by the end of August. By the end of September, Bartleby Graduate Inc. collected another P300,000 without sales discounts. The agreement with the bank provides a monthly remittance from customer collections and it will cover both the principal and interest.
At the beginning of July, Bartleby Graduate Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivable to BPI in consideration of a P1,500,000, 12% loan. BPI charged the company 5% of the loan principal as service charge. By the end of July, Bartleby Graduate Inc. collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of July, the company accepted a customer return of merchandise amounting to P60,000. By the end of August, Bartleby Graduate Inc. collected another P682,000 from the assigned accounts after P40,000 sales discount. The company also wrote-off P80,000 as worthless accounts by the end of August. By the end of September, Bartleby Graduate Inc. collected another P300,000 without sales discounts. The agreement with the bank provides a monthly remittance from customer collections and it will cover both the principal and interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
How much is the remittance of Bartleby Graduate Inc. to the bank by the end of September? *
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education