Starlight Company assigned P2,000,000 of accounts receivable as collateral for a P1,000,000 7% loan with a bank. The entity also paid a finance fee of 5% on the transaction upfront. What amount should be recorded as a gain or loss on the transfer of accounts receivable? P200,000 loss P100,000 loss O P 240,000 gain

Starlight Company assigned P2,000,000 of accounts receivable as collateral for a P1,000,000 7% loan with a bank. The entity also paid a finance fee of 5% on the transaction upfront. What amount should be recorded as a gain or loss on the transfer of accounts receivable? P200,000 loss P100,000 loss O P 240,000 gain

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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