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.
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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