1. CMA Company factored P2,500,000 of accounts receivable with a finance company. The factoring fee was 5% of the accounts purchased. the finance company withheld 10% of the purchase price to cover sales discounts, returns and allowances. what amount of cash was received on the factoring of accounts receivable?

a.2,125,000

b.2,375,000

c.2,500,000

d.2,137,500

2. What amount should be recognized as loss on Factoring?

a.0

b.237,500

c.362,500

d.125,000

CPA Company accepted from a customer P500,000 face amount, 9-month, 8% note dated June 15, 2022. On the same date, the company discounted the note without recourse at a 12% discount rate.

3. What amount of cash was received from the discounting?

a.482,300

b.500,000

c.475,200

d.530,000

4.hat is the gain (loss) on discounting?

a.Zero

b.(17,700)

c.(24,800)

d.17,700

5. On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note receivable dated April 30, 2022. the bank discounted the note at 12% on the same date. what amount of cash was received from the discounting?

a.1,290,000

b.1,225,500

c.1,320,000

d.1,173,900