1) On December 1, 2009, MM Company assigned on a non-notification basis accounts receivable of P3,000,000 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 P2,000,000 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. In its December 31, 2009 balance sheet, what amount of the note payable should MM report as current liability?

2) On October 31, 2009, Bundle Company engaged in the following transactions:Obtained a P500,000, six-month loan from City Bank, discounted at 12%. The company pledged P500,000 of accounts receivable as security for the loan.Factored P1,000,000 of accounts receivable without recourse on a non notification basis with Help Company. Help charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. What is the total cash received from the financing of receivables?

3) XYZ Company factored P6,000,000 of accounts receivable to ABC Company on October 1. Control was surrendered by XYZ. ABC accepted the receivables subject to recourse for nonpayment. ABC assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, ABC charged 15% interest computed on a weighted-average time to maturity of the receivables of 54 days. The fair value of the recourse obligation is P90,000. XYZ will receive and record cash of (assume 365 days)

4) On July 1, Mazda Company sold P5,800,000 in accounts receivable for cash of P5,000,000. The factor withheld 10% of the cash proceeds to allow for possible customer returns and other adjustments. An allowance for bad debts of P600,000 had previously been established by Mazda in relation to these accounts. What was the loss on factoring recognized by Mazda Company?

5) Roth Company received from a customer a one-year, P500,000 note bearing annual interest rate of 8%. After holding the note for six months, Roth discounted the note at Regional Bank at an effective interest rate of 10%, What amount of cash did Roth receive from the bank?