Good morning tutor. Can you help me with these problem? The subject is Financial Accounting and Reporting. Instruction: Read and Answer the following questions, provide also the solution and detailed explanation on how you come up with the answer. Joseph Company assigned an accounts receivable to a bank in the amount of P1,000,000 on October 1, 20x1, as security for a loan of P800,000. The bank charged a 3% commission on the accounts. The interest rate on the note is 12%. Joseph collected P300,000 on assigned accounts after deducting P50,000 of discounts during the month. Moreover, Joseph wrote off a P53,000 assigned account. Joseph paid to the bank the amount collected plus one (1) month's interest on the note. On October 31, 20x1, Joseph estimated that 8% of the assigned accounts were doubtful in collection. Questions: How much is the doubtful expense to be recognized by Joseph Company for the above transaction? What is Joseph Company’s accounts receivable balance on October 31, 20x1?
Good morning tutor. Can you help me with these problem? The subject is
Instruction: Read and Answer the following questions, provide also the solution and detailed explanation on how you come up with the answer.
Joseph Company assigned an
Joseph collected P300,000 on assigned accounts after deducting P50,000 of discounts during the month. Moreover, Joseph wrote off a P53,000 assigned account. Joseph paid to the bank the amount collected plus one (1) month's interest on the note. On October 31, 20x1, Joseph estimated that 8% of the assigned accounts were doubtful in collection.
Questions:
- How much is the doubtful expense to be recognized by Joseph Company for the above transaction?
- What is Joseph Company’s accounts receivable balance on October 31, 20x1?
Step by step
Solved in 3 steps with 2 images
