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

Accounts Receivable P2,000,000

Allowance for doubtful accounts (60,000)

The following transactions transpired for ABC Company during the year 2016:

a. On May 1, received a P300,000, six-month, 12% interest bearing note from Ed, a Customer in

settlement of an account.

b. On June 30, factored P400,000 of its accounts receivable to a finance company. The finance company

charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored.

C. On August 1, ABC discounted the Ed Note at the bank at 15%.

d. On November 1, Ed defaulted on the P300,000 note. ABC company paid the bank the total amount

due plus a P12,000 protest fee and other bank charges.

e. On December 31, ABC Company assigned P600,000 of its accounts receivable to a bank under a non-

notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. ABC

Company signed a promissory note for the loan.

f. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since

default date.

g. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove

uncollectible.

Question:

Amount of cash received on August 1 discounting.

Select the correct response

A. P306,075

B. P318,000

C. P300,000

D. Answer not given

E. P329,925