1. Diligent Companyfactored P12,000,000 of accounts receivable to a finance entity at the beginning of the current year. Control was surrendered by Diligent Company. The factor assessed a fee of 4% and retained a holdback equal to 15% of the accounts receivable.

In addition, the factor already charged 12% interest computed on weighted average time to maturity of the accounts receivable of 30 days.

How much is the loss on factoring?

How much is the cash received by Diligent Company as a result of accounts receivable factoring?