Jennie Company assigned on a notification basis P4,000,000 of accounts receivable to a finance entity as security for a loan of P3,500,000. The finance entity charged a 6% commission on the amount of loan and interest on the note of 10%. During the first month, the finance entity collected P1,200,000 on the assigned accounts after deducting sales discounts of P150,000. The finance entity accepted sales returns worth P100,000 and wrote assigned accounts totaling P50,000. What is the amount of cash received from the finance entity at the time of the transfer?
Jennie Company assigned on a notification basis P4,000,000 of accounts receivable to a finance entity as security for a loan of P3,500,000. The finance entity charged a 6% commission on the amount of loan and interest on the note of 10%. During the first month, the finance entity collected P1,200,000 on the assigned accounts after deducting sales discounts of P150,000. The finance entity accepted sales returns worth P100,000 and wrote assigned accounts totaling P50,000. What is the amount of cash received from the finance entity at the time of the transfer?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jennie Company assigned on a notification basis P4,000,000 of
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