ABC Co. showed the following balances on December 31, 2018;

Accounts Receivable P2,000,000

Allo. for doubtful accounts (60,000)

The following transactions transpired for ABC Co. during the year 2016

1. On may 1, received a P300,000, six-month , 12% interest bearing note from Ed, a customer in settlement of an account.
2. On june 30, factored P400,000 of its A/R to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored.
3. On august 1, ABC discounted the Ed note at the bank at 15%
4. On november 1, Ed defaulted on the P300,000 note. ABC Co. paid the bank the total amount due plus a P12,000 protest fee and other bank charges.
5. On December 31, ABC Co. assigned P600,000 of its A/R to a bank under a non notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned . ABC Co. signed a promissory note for the loan.
6. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since default date.
7. On december 31, ABC it is estimated that 5% of the outstanding A/R may prove uncollectible.

Amount paid on Nov 1 default on the P300,000 note

• 318,000
• 330,000
• Answer not given
• 312,000
• 336,600