Question
The answer to this is 0, but can you help me to explain that answer Star Company assigned a P4,000,000.00 of accounts receivable as collateral
The answer to this is 0, but can you help me to explain that answer
Star Company assigned a P4,000,000.00 of accounts receivable as collateral for a P2,000,000 6% loan with a bank. The entity also paid a finance fee of 5% on the transaction upfront.What amount should be recorded as gain or loss on the transfer of accounts receivable?
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
