On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity 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 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. a bank in consideration for a loan of 80% of the What is the balance of accounts receivable assigned on December 31, 2020?
On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity 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 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. a bank in consideration for a loan of 80% of the What is the balance of accounts receivable assigned on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On December 1, 2020, RB Company assigned on a non-notification basis accounts
receivable of Php6,000,000 to
accounts less a 5% service fee on the accounts assigned. The entity signed a note for
the bank loan. On December 31, 2020, the entity collected assigned accounts of
Php2,000,000 less discount of Php200,000. The entity 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 1% per month on the loan
balance. The entity accepted sales returns of Php100,000 on the assigned accounts and
wrote off assigned accounts totaling Php300,000.
a bank in consideration for a loan of 80% of the
What is the balance of accounts receivable assigned on December 31, 2020?
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