Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. A note payable was executed. The contract provided that PJTC would advance 85% of the gross amount of the receivables. The contract specified recourse and non-notification; therefore, Japee’s debtors continue to remit directly to it; the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to the principal. During the first month, customers owing P164,000 paid cash, less sales returns and allowances of P6,400. The finance charge at the end of the first month was P1,400.How much is the disclosed equity in assigned accounts as of the end of the first month? * Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. Anote payable was executed. The contract provided that PJTC would advance 85%of the gross amount of the receivables. The contract specified recourse andnon-notification; therefore, Japee's debtors continue to remit directly to it; thecash from customers is then remitted to the finance company. The cash remittedis first applied to the finance charges, with the remainder applied to the principal.During the first month, customers owing P164,000 paid cash, less sales returnsand allowances of P6,400. The finance charge at the end of the first month wasP1,400.How much is the disclosed equity in assigned accounts as of the end ofthe first month?Your answerWNee to searchII

Formula used: Disclosed equity assigned account=account receivable+finance charges-cash remitted to…

Answered: Japee, Inc. assigned P240,000 of its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. A note payable was executed. The contract provided that PJTC would advance 85% of the gross amount of the receivables. The contract specified recourse and non-notification; therefore, Japee’s debtors continue to remit directly to it; the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to the principal. During the first month, customers owing P164,000 paid cash, less sales returns and allowances of P6,400. The finance charge at the end of the first month was P1,400.How much is the disclosed equity in assigned accounts as of the end of the first month? *

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