On December 1, 2009, LOAN Company assigned on a non-notification basis accounts receivable of P5,000,000 to a bank in consideration for a loan of 90% of the receivables less a 5% service fee on the accounts assigned. LOAN signed a note for the bank loan. On December 31, 2009, LOAN collected assigned accounts of P2,500,000 less discount of P200,000. LOAN remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 2% per month on the loan balance. LOAN Company sold P1,550,000 of accounts receivable for P1,340,000. The receivables had a carrying amount of P1,470,000 and were sold outright on a nonrecourse basis LOAN Company received an advance of P300,000 from Union Bank by pledging P360,000 of accounts receivable. On June 30, 2009, LOAN Company discounted at a bank a customer's P600,000, 6-month, 12% note receivable dated May 30, 2009. The bank discounted the note at 10% on the same date 1. The Company’s equity in the assigned accounts receivable as of December 31, 2009, is 2. The proceeds from the note receivable discounted on June 30, 2009, is
On December 1, 2009, LOAN Company assigned on a non-notification basis
receivable
less a 5% service fee on the accounts assigned. LOAN signed a note for the bank loan.
On December 31, 2009, LOAN collected assigned accounts of P2,500,000 less discount of
P200,000. LOAN remitted the collections to the bank in partial payment for the loan. The
bank applied first the collection to the interest and the balance to the principal. The agreed
interest is 2% per month on the loan balance.
LOAN Company sold P1,550,000 of accounts receivable for P1,340,000. The receivables had
a carrying amount of P1,470,000 and were sold outright on a nonrecourse basis
LOAN Company received an advance of P300,000 from Union Bank by pledging P360,000 of
accounts receivable.
On June 30, 2009, LOAN Company discounted at a bank a customer's P600,000, 6-month, 12%
note receivable dated May 30, 2009. The bank discounted the note at 10% on the same date
1. The Company’s equity in the assigned accounts receivable as of December 31, 2009, is
2. The proceeds from the note receivable discounted on June 30, 2009, is
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