On February 1, 2004, Mickey Mouse Corporation factored receivables amounting to P500,000 to Minnie Mouse Corporation for P350,000. It has an allowance for uncollectible accounts of 3%. Minnie Mouse retains 5% of the receivables as factors holdback. Relative to this transaction, you are to determine the amount of gain or loss on sale to be reported in the income statement of Mickey Mouse Company for February. 135,000 loss 135,000 gain 139,500 loss 139,500 gain

On February 1, 2004, Mickey Mouse Corporation factored receivables amounting to P500,000 to Minnie Mouse Corporation for P350,000. It has an allowance for uncollectible accounts of 3%. Minnie Mouse retains 5% of the receivables as factors holdback. Relative to this transaction, you are to determine the amount of gain or loss on sale to be reported in the income statement of Mickey Mouse Company for February. 135,000 loss 135,000 gain 139,500 loss 139,500 gain

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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