Show solutions On December 1, 2021, Autumn company assigned on a non- notification basis accounts receivable of Php3,000,000 to a bank in consideration for a loan of 80% of the receivables less a 5% service fee on the accounts assigned. the interest rate of the loan is 12% per annum. The company collected assigned accounts of Php2,000,000 and remitted the collections to the bank in partial payment for the loan. the bank applied first the collection to the interest and the balance to the principal. the interest rate is 1% per month on the outstanding balance of the loan. How much cash did autumn receive at the time of the transfer? a.Php3,000,000 b. Php2,400,000 c. Php2,280,000 d. Php2,256,000
Show solutions On December 1, 2021, Autumn company assigned on a non- notification basis accounts receivable of Php3,000,000 to a bank in consideration for a loan of 80% of the receivables less a 5% service fee on the accounts assigned. the interest rate of the loan is 12% per annum. The company collected assigned accounts of Php2,000,000 and remitted the collections to the bank in partial payment for the loan. the bank applied first the collection to the interest and the balance to the principal. the interest rate is 1% per month on the outstanding balance of the loan. How much cash did autumn receive at the time of the transfer? a.Php3,000,000 b. Php2,400,000 c. Php2,280,000 d. Php2,256,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, 2021, Autumn
company assigned on a non-
notification basis accounts
receivable of Php3,000,000 to a
bank in consideration for a loan of
80% of the receivables less a 5%
service fee on the accounts
assigned. the interest rate of the loan is 12% per annum. The company collected assigned accounts of Php2,000,000 and remitted the collections to the bank in partial payment for the loan. the bank applied first the collection to the interest and the balance to the principal. the interest rate is 1% per month on the outstanding balance of the loan.
How much cash did autumn receive at the time of the
transfer?
a.Php3,000,000
b. Php2,400,000
c. Php2,280,000
d. Php2,256,000
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