Destroyer company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1,2009,the company factored P200,000 of its accounts receivable to Atlas Finance Company. The purchase price was 85% of the receivables factored .Atlas withheld 5% of the purchase price as protection against sales and allowances.

(a) What was the net cash received by Destroyer Company from this factored accounts? (b) Prepare the entry to record the factoring of accounts receivables.