Question
Can I ask for the solutions for these following problems? This is from my subject in Intermediate Accounting. 1.) Jana Company provided the following information
Can I ask for the solutions for these following problems? This is from my subject in Intermediate Accounting.
1.) Jana Company provided the following information with respect to factoring of accounts receivable.
July 1:
Factored P800,000 of accounts receivable without recourse with a bank on notification basis.
The bank charged a factoring fee of 5% of the amount of accounts receivable factored and withheld 10% of the accounts receivable factored to cover sales return and allowances.
July 15:
Received notice from the bank that factored accounts are fully collected less sales return and allowances of P20,000.
July 31:
Received a check from the bank as a final settlement of the factoring contract.
Requirements:
a.) Compute the Loss on Factoring
b.) Compute the Cash received from Factoring
c.) Compute the balance of Factor's Receivable as of July 31
2.) Banana Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.
After holding the note for six months, the entity discounted the note at the bank at an effective interest rate of 10%.
Requirements:
a.) What amount of cash was received from the bank?
a. 540,000
b. 523,810
c. 513,000
d. 495,238
b.) What is the loss on note receivable discounting?
a. 20,000
b. 13,000
c. 7,000
d. 0
c.)Prepare the Journal entry on the date of discounting if
- if the note was sold without recourse
- If the note was sold with recourse - conditional sale
- If the note was sold with recourse - Secured borrowing
3.) On July 1, 2020, Sasa Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing note receivable.
At the time of sale, the note's market rate of interest was 12%. The note was discounted at 10% on Sept. 1, 2020.
Requirements:
a.) What amount was received from the note receivable discounting?
a. 1,940,000
b. 1,938,000
c. 1,900,000
d. 1,880,000
b.) What is the loss on note receivable discounting?
a. 100,000
b. 125,000
c. 25,000
d. 0
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