CPA Co. is bothered about its cash position as collections of receivables are delayed and its obligations are currently maturing. On December 31 of the current year, the entity has the following accounts: Accounts receivable of P800,000 and allowance for doubtful accounts of P80,000. Because of its critical cash position, the entity factored (under casual factoring) its accounts, receivable. The factor charged 15% commission on all accounts receivable and withheld 10% of the accounts factored as protection against customer returns and other adjustments. How much of these receivables will be presented in the statement of financial position?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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CPA Co. is bothered about its cash position as collections of receivables are
delayed and its obligations are currently maturing. On December 31 of the
current year, the entity has the following accounts: Accounts receivable of
P800,000 and allowance for doubtful accounts of P80,000. Because of its
critical cash position, the entity factored (under casual factoring) its accounts.,
receivable. The factor charged 15% commission on all accounts receivable and
withheld 10% of the accounts factored as protection against customer returns
and other adjustments. How much of these receivables will be presented in the
statement of financial position?
Transcribed Image Text:CPA Co. is bothered about its cash position as collections of receivables are delayed and its obligations are currently maturing. On December 31 of the current year, the entity has the following accounts: Accounts receivable of P800,000 and allowance for doubtful accounts of P80,000. Because of its critical cash position, the entity factored (under casual factoring) its accounts., receivable. The factor charged 15% commission on all accounts receivable and withheld 10% of the accounts factored as protection against customer returns and other adjustments. How much of these receivables will be presented in the statement of financial position?
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