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Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A - Accounts receivable (180 days past due) Mr. B - Accounts receivable assigned to the accounts payable to a supplier. 300,000 100,000 Mr. C- Accounts receivable factored to a financing company without recourse. 500,000 200,000 120,000 150,000 18,000 (5,000) Mr. D - Note receivable discounted at a bank. Mr. E - Note receivable from customer, dishonored. Mr. F - President of the Company, advances for personal use. Mr. G - Proven worthless accounts. Mr. H- Customer with credit balance. Other Trade Accounts Receivables (P10,000 of which are pledged against a loan from X Bank.) 200,000

Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A - Accounts receivable (180 days past due) Mr. B - Accounts receivable assigned to the accounts payable to a supplier. 300,000 100,000 Mr. C- Accounts receivable factored to a financing company without recourse. 500,000 200,000 120,000 150,000 18,000 (5,000) Mr. D - Note receivable discounted at a bank. Mr. E - Note receivable from customer, dishonored. Mr. F - President of the Company, advances for personal use. Mr. G - Proven worthless accounts. Mr. H- Customer with credit balance. Other Trade Accounts Receivables (P10,000 of which are pledged against a loan from X Bank.) 200,000

FINANCIAL ACCOUNTING
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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Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A - Accounts receivable (180 days past due) Mr. B - Accounts receivable assigned to the accounts payable to a supplier. 300,000 100,000 Mr. C - Accounts receivable factored to a financing company without recourse. 500,000 200,000 120,000 150,000 18,000 (5,000) Mr. D- Note receivable discounted at a bank. Mr. E - Note receivable from customer, dishonored. Mr. F - President of the Company, advances for personal use. Mr. G - Proven worthless accounts. Mr. H - Customer with credit balance. Other Trade Accounts Receivables (P10,000 of which are pledged against a loan from X Bank.) 200,000 Additional information: • The allowance for doubtful account has a credit balance of P10,000 at the beginning of the year. Based on aging of receivables, the required allowance for doubtful account will be P20,000. The accounts receivable from Mr. C was factored at 90% plus P 5,000 factoring fee. • The note receivable was discounted at 18% on December 1, 2020. This is a 6-month, 10% note that will mature on February 1, 2021. 5. How much is the proceeds from factoring? 6. How much is the proceeds from discounting? 7. How much is the doubtful account expense?
Transcribed Image Text:Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A - Accounts receivable (180 days past due) Mr. B - Accounts receivable assigned to the accounts payable to a supplier. 300,000 100,000 Mr. C - Accounts receivable factored to a financing company without recourse. 500,000 200,000 120,000 150,000 18,000 (5,000) Mr. D- Note receivable discounted at a bank. Mr. E - Note receivable from customer, dishonored. Mr. F - President of the Company, advances for personal use. Mr. G - Proven worthless accounts. Mr. H - Customer with credit balance. Other Trade Accounts Receivables (P10,000 of which are pledged against a loan from X Bank.) 200,000 Additional information: • The allowance for doubtful account has a credit balance of P10,000 at the beginning of the year. Based on aging of receivables, the required allowance for doubtful account will be P20,000. The accounts receivable from Mr. C was factored at 90% plus P 5,000 factoring fee. • The note receivable was discounted at 18% on December 1, 2020. This is a 6-month, 10% note that will mature on February 1, 2021. 5. How much is the proceeds from factoring? 6. How much is the proceeds from discounting? 7. How much is the doubtful account expense?
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