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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much is the remittance of Bartleby Graduate Inc. to the bank by the end of September? *

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.
Transcribed Image Text: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.
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