On January 31, 2019, YZ Company engaged in the following transactions: • Obtained a P500,000, 6-month loan from ZY, discounted at 12%. The company pledged P600,000 accounts receivable as security for the loan. • Factored P1,000,000 of accounts receivable without recourse on a notification basis with xWV Finance Company. XWV Finance charged a factoring fee of 5% of the amount of receivables factored and withheld 10% of the receivables factored. What is the total cash received from the financing of receivables and the amount of loss, respectivelv? P1,420,000 and P50,000 P1,320,000 and P150,000 P1,420,000 and P150,000 P1,320,000 andP50,000

On January 31, 2019, YZ Company engaged in the following transactions: • Obtained a P500,000, 6-month loan from ZY, discounted at 12%. The company pledged P600,000 accounts receivable as security for the loan. • Factored P1,000,000 of accounts receivable without recourse on a notification basis with xWV Finance Company. XWV Finance charged a factoring fee of 5% of the amount of receivables factored and withheld 10% of the receivables factored. What is the total cash received from the financing of receivables and the amount of loss, respectivelv? P1,420,000 and P50,000 P1,320,000 and P150,000 P1,420,000 and P150,000 P1,320,000 andP50,000

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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