Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these accounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to Php600,000?

Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these accounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to Php600,000?

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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