On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as collateral on a P3,000,000, 12% note from a certain bank. The Mars will continue to collect the assigned accounts receivable (non-notification basis). In addition to the interest on 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 discounts of P100,000. On December 31, 2020, Mars remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. Mars accepted sales return of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. What is the balance of accounts receivable assigned on December 31, 2020?
On December 1, 2020, Company assigned specific
What is the balance of accounts receivable assigned on December 31, 2020?
Step by step
Solved in 4 steps
