1. CPA Company sold accounts receivable without recourse for P8,200,000. the company received P8,000,000 cash immediately from the factor. the remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts.

The accounts receivable had a face amount of P9,000,000. the company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts.

What amount of loss on factoring should be recognized?

a.800,000

b.350,000

c.550,000

d. 1,000,000

2.CMA Company has a 12% note receivable dated July 1, 2022, in the original amount of P900,000. Payments of P300,000 in principal plus accrued interest are due annually on July 1, 2023, 2024 and 2025. the market rate of interest of this kind of note is 12%. How much is the interest income for the year ended December 31, 2022?

a.108,000

b.18,000

c. zero

d.54,000

3.How much is the interest income for the year ended December 31, 2023?

a.36,000

b.108,000

c.72,000

d.90,000

4. What amount should be reported as current assets in relation to the note on December 31, 2023?

a.36,000

b.300,000

c.390,000

d.336,000

5. What amount should be reported as non - current assets in relation to the note on December 31, 2023?

a.600,000

b.Zero

c.300,000

d.354,000

6. How much is the interest income for the year ended December 31, 2024?

a.18,000

b.90,000

c.54,000

d.36,000