(7) Highway Company provides financing to other companies by purchasing their accounts receivable on a nonrecourse basis. Highway charges its clients a commission of 15% on all recevables factored in addition Highway withholds 10% of receivables factored as protection against sales returns or othcr adjustments Highway credits the 10% withheld to Clients Retainer account and makes payments to clients at the end of each month so that the balance in the retainer is equal to 10% of unpaid receivables at the end of the month expenence has led Highway to establish an allowance for doubtful accounts of 4% of all unpaid receivables purchasod On December 1, Highway purchased receivables from Autoworks Company totaling P 3,000,000. Autoworks had previously established an allowance for doubtful accounts for these receivables at P 100,000. By December 31, Highway had collected P 2,500,000 on these receivables. Prepare entries necensary to record the transactions on the books of Autoworks Company (seller of accounts receivable) and Highway Company (factor). (8) Foresail Company recesved from a customer a one-year, P 500 000 note beanng annual interest of 8% Five months prior to maturity, Foresail discounted the note at City Bank at an effective interest rate of 10%, What were tke proceeds from the note discounting? On May 16, 2009, the following notes are discounted by the bank at 15% (9) 30-day, P 90,000 non-interest bearing note dated May 6. a) 90-day, P 75,000, 15% note dated April 6. 120-day, P 60,000, 16% note dated March 2. b) c) off figures to Determine the cush proceeds from discounting each note Assume a 36s-day year. Round nearest pesa. (10)On December l of the current year, Bcnnigan Company accepted a P240,000, 90-day, 12% note on a count end is December 31. Bennigan assumes a 360-day year, and 30-day from Mac Corporation. Bennigan's ycar months for all interest calculations. a) Prepare the appropriate journal entry to record the receipt of the note on December b) Prepare the appropriate adjusting entry at December 31 e) Prepare the appropriate entry at the maturity date of the mote, assuming payment in full is d) Prepare the appropriate entry at the maturity date of the note, assuming the note is dishonored (11)On February 1, 2009, sportive Corporation acquired a l6% 9-month note receivable from a customer settlement of an overdue accounts reccivable April 1, 2009, Sportive Sportive Corporation that the note was dishonored by the maker, thus, on November Sportive's account for the maturity value of the note plus a protest fee of P 1.500. of P 60.000 The principal and interest are due at maturity discounted the note at Leyte Bank at 15%. During November, Leyte Bank notifie 30, the bank charge Prepare journal entries on February 1, April I and November 30