3. On December 1, 2020 Pozurrubio Company assigned on a nonnotification basis accounts receivable of P5,000,000 to a bank in consideration for a loan of 90% of the receivables less a 5% service fee on the accounts assigned. Pozurrubio signed a note for the bank loan. On December 31, 2020, Pozurrubio collected assigned accounts of P3,000,000 less discount of P200,000. Pozurrubio 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 agreed interest is 1% per month on the loan balance. In its December 31, 2020 balance sheet, Pozurrubio should report note payable as a current liability at ? 4. Binalonan Company factored P5,000,000 of accounts receivable to ABC Company on July 1, 2020. Control was surrendered by Binalonan. ABC assessed a fee of 5% and retains a holdback equal to 20% of the accounts receivable. In addition ABC charged 12% computed on a weighted average time to maturity of the receivables of 30 days. 1. Binalonan Company will receive and record cash of ? 2. Assuming all receivables are collected, Binalonan Company's cost of factoring the receivables would be