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Problem - ABC Department store had the following credit card transactions related to year 2020: - Total sales charged by customers are as follows:
Eastwest bank P 1,000,000
BDO 750,000
Credit card receipts charged to BDO are credited directly to ABC Department store, net 3% of service charge. Eastwest bank charges also a credit card service charge of 3% upon deposit to ABC Department store. At the end of the year, no collections yet were received from Eastwest bank. How much accounts receivable must be recognized at year end related to the credit card sales during the year?
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