On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by Maymay Incorporated as security for a loan of P750,000. Hello charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Maymay collected P350,000 on assigned accounts after deducting P560 of discounts. Maymay wrote off a P530 assigned account. On December 31, Maymay remitted to Hello the amount collected plus one month's interest on the note. REQUIRED: 1.) How much is Maymay's equity in the assigned accounts receivable as of December 31?
On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by Maymay Incorporated as security for a loan of P750,000. Hello charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Maymay collected P350,000 on assigned accounts after deducting P560 of discounts. Maymay wrote off a P530 assigned account. On December 31, Maymay remitted to Hello the amount collected plus one month's interest on the note. REQUIRED: 1.) How much is Maymay's equity in the assigned accounts receivable as of December 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by Maymay Incorporated as security for a loan of P750,000. Hello charged a 3% commission on the accounts; the interest rate on the note is 12%.
During December, Maymay collected P350,000 on assigned accounts after deducting P560 of discounts. Maymay wrote off a P530 assigned account. On December 31, Maymay remitted to Hello the amount collected plus one month's interest on the note.
REQUIRED:
1.) How much is Maymay's equity in the assigned accounts receivable as of December 31?
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