note from certain bank. The company will continue to collect the assigned receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On 31 December 2017, the entity remitted the collections to the bank in payment for the interest accrued on 31 December 2017 and the note payable. The entity accepted the sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. What is the loss on factoring?
On 31 December 2017, BC assigned specific accounts receivable amounting to P4,000,000 as collateral on P3,000,000, 12% note from certain bank. The company will continue to collect the assigned receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note.
The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On 31 December 2017, the entity remitted the collections to the bank in payment for the interest accrued on 31 December 2017 and the note payable.
The entity accepted the sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000.
What is the loss on factoring?
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