Please SHOW COMPLETE SOLUTIONS IN EVERY ANSWER.
RECEIVABLES FINANCING, ACCOUNTING FOR LOAN RECEIVABLE AND ACCOUNTING FOR RECEIVABLE IMPAIRMENT
W WW W 1. On December 1, 2016, Hawkeye Company's trade receivables account balance was P8,000,000 while the allowance for bad debts was P2001100. It assigned P4,500,000 to Clint Financing Company as a security for a loan. The loan amount of P3000000 carries an interest rate of 9%. Clint Financing Company charges a 3% service fee based on the amount borrowed. Credit sales from November 1 to December 31. 20115 totaled P2000003. Total collections from credit customers during the same period amounted to P4.100.000. of which P1300000 were from the assigned accounts. Hawkeye Company remitted the collections of the assigned accounts to Flint Financing Company plus accrued interest by the end of 2016. Theallowance for uncollectible accounts is based on 4% of the receivables balance 3. Prepare the entries in relation to the accounts receivables lor the period November 1 to December 31, 2016. h The Trade and other receivables reported in the December 31 . 2016 statement of linancial position is c. The "equity over the assigned accounts" at December 31, 2016 is 2. On December 1. 2016. Wonder Woman Company used receivables totaling P2300000 as a collateral on a P1.400.000. 3% note from Diana Bank. Diana Bank also receives a 1.25% service charge. deducted in advance on the loan amount. Assigned accounts collected in December amounted to P515,000 in 'W'1'11Ch discounts of P35.000 were granted. On December 31 , 2016 1Wonder Woman Company remitted the December collections to Diana Bank. The amount was initially applied to accrued interest and the balance to the loan 3. Prepare the entries in relation to the accounts receivables h The \"equity over the assigned accounts" at December 31. 2016 is 3. Black Widow Company finances some of its current operations by assigning accounts receivable on a notification basis to Natasha Finance. On July 1. 2016. it assigned. under guarantee, specific accounts amounting to P4000000. Natasha Finance shall advance to Black Widow Company 80% of the accounts assigned, less a finance charge of 2% of the total accounts assigned. On July 31 , Black Widow Company received a statement that Natasha Finance had collected P2200000 of these accounts. and had made an additional charge of 2% of the total accounts outstanding as of July 31. This additional charge shall be deducted from the remittance due to Black Widow Company from Natasha Finance. On august 31 . Black Widow Company received a statement that Natasha Finance together with a check for the amount due. 1he statement indicated that Natasha Finance collected an additional P1250000 and has make a further charge of 2% of the balance outstanding as of August 31 . 3. Prepare the entries in relation to the accounts receivable h The amount of the check received from Natasha Finance on August 31
