Question
104. On February 1, 2017, ABC Corporation factored receivables with a carrying amount of P2,000,000, to DEF Corporation. ABC Corporation assesses a finance charge of
104. On February 1, 2017, ABC Corporation factored receivables with a carrying amount of P2,000,000, to DEF Corporation. ABC Corporation assesses a finance charge of 3% of the receivable and retains 5% of the receivables.
If factoring is treated as a sale, what amount of loss from the sale should the company report in its 2017 Statement of Comprehensive Income for the year 2017?
- P160,000
- P60,000
- Answer not given
- P0
- P100,000
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
