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On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. In the previous problem, what is the carrying amount of note payable on December 31, 2020?

On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. In the previous problem, what is the carrying amount of note payable on December 31, 2020?

FINANCIAL ACCOUNTING
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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On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable.

In the previous problem, what is the carrying amount of note payable on December 31, 2020?

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