Please SHOW COMPLETE SOLUTIONS IN EVERY ANSWER.
RECEIVABLES FINANCING, ACCOUNTING FOR LOAN RECEIVABLE AND ACCOUNTING FOR RECEIVABLE IMPAIRMENT
?
4. On_ December 1. 2016. specic customer accounts receivable totaling P1350000 were assigned to Green Lantern Lending by Hal Company as collateral for a P3.00.000 loan The nance company charged a 0.5% finance charge on the total accounts receivable assigned. The note bears interest at 9% per year. During December. Green Lantern Company collected P980000 of the assigned accounts. The amount was remitted to the nance company. a. The cash proceeds arising from the assignment of the receivables is h The gainfloss arising from the assignment of the receivables is c. The "equity over the assigned accounts" at December 31. 2016 is 5. Hulk Company factors P2600000 of accounts receivable with Bruce Finance on a without recourse [without guarantee} basis on July 1. 2016. The receivable records are transferred to Bruce Finance. which will receive the collections. Bruce Finance assesses a service charge of 3% of the factored accounts and retains an amount equal to 5% of accounts receivable factored to over sales discounts. returns. and allowances. 3. Prepare the entries in relation to the receivables h The net cash proceeds arising from the factoring of the receivables is c. The gainflloss] arising from the factoring of the receivables is 6. Robin Corporation factors P1.500.000 of accounts receivable to Dick Financing on a with recourse [with guarantee] basis. Robin Corporation has transferred substantially all the risks and rewards of ownership and the receivable records are transferred to Dick Financing on August 15. 2016. Dick Financing assess a finance charge of 8% of the amount of accounts receivable. The recourse obligation has a fair value of P15.000 at the time of the factoring. 3. Prepare the entries in relation to the receivables h The net cash proceeds arising from the factoring of the receivables is c. The gain! [loss] arising from the factoring of the receivables is '1 Falcon Company Factors P2000000 of accounts receivable to Sam Financing on a with recourse [with guarantee] basis. Falcon Company has not transferred substantially all the risks and rewards of ownership. Sam Financing assess a finance charge of 12% of the amount of accounts receivable. 3. Prepare the entries in relation to the receivables h The net cash proceeds arising from the factoring of the receivables is c. The gainflloss] arising from the factoring of the receivables is 8. Atom Company factored P2800000 of accounts receivable to Ray Storage Bank on July 1. 2016. Atom Company surrendered control over the receivables. Atom Company accepted the accounts receivable for 2320.000 subject to recourse for non payment. Atom Company shall retain a holdback equal to 5% of the accounts receivable. The fair value of the recourse obligation is P18.000. a. The cash proceeds arising from the transfer of the receivables is h The gainfloss arising from the transfer of the receivable is
