Hello, pls provide an explanation and a solution. It would be a big help for me : Problem 8-17 (AICPA Adapted) Cynthia Company factored P750,000 of accounts receivable at year-end. Control was surrendered. The factor accepted the accounts receivable subject to recourse for nonpayment and the fair value of the recourse obligation is P20,000. The factor assessed a fee of 2% and retained a holdback equal to 4% of the accounts receivable. In addition, the factor charged 12% interest computed on a weighted average time to maturity of 51 days. 1. What amount of cash was initially received from the factoring? a. 692,425 b. 720,000 c. 722,425 d. 705,000 2. What total amount should be recognized initially as logs on factoring the accounts receivable? a. 12,575 b. 15,000 c. 27,575 d. 47,575 Problem 8-18 (IAA) Daisy Company sold accounts receivable without recourse with face amount of P6,000,000. The factor charged 15% commission on all accounts receivable factored and withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of P200,000 for these accounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustments. 1. What amount of cash was initially received from factoring? a. 4,500,000 b. 5,400,000 c. 5,100,000 d. 6,000,000 2. What amount should be recognized as loss on factoring? 700,000 b. 900,000 200,000 d. 0 258