On June 30, 2021, VKS Company factored P2,500,000 of accounts receivable for P2,250,000. The allowance for uncollectible accounts for these factored receivables was P50,000. On December 1, 2021, VKS Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank. VKS received the P2,000,000 less 2% finance charge based on the loan. How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?
On June 30, 2021, VKS Company factored P2,500,000 of accounts receivable for P2,250,000. The allowance for uncollectible accounts for these factored receivables was P50,000. On December 1, 2021, VKS Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank. VKS received the P2,000,000 less 2% finance charge based on the loan. How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 30, 2021, VKS Company factored P2,500,000 of
On December 1, 2021, VKS Company assigned accounts receivable of P3,500,000 as collateral of a P2,000,000, 12% annual interest rate loan from a commercial bank. VKS received the P2,000,000 less 2% finance charge based on the loan.
How much is the total loss/expenses related to factoring and assignment of receivables for the year 2021?
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