Reference no: EM132895834

COLLANTES Company assigned certain accounts receivable to a bank for a loan on the following basis:

75% cash advance,

4 % service charge on gross accounts assigned,

2% interest per month is to be charged, and

the bank makes the collections. The entity signed a promissory note for the loan.

July 1 Received remittance upon the specific assignment of P1,500,000 in accounts to the bank.

Aug 1 Received notice from bank that P800,000 of the assigned accounts were collected. A check was sent to the bank for one month interest charge.

Sep 1 Received notice from the bank that assigned accounts of P500,000 were collected in full and the remaining accounts of P200,000 were being returned. Accordingly, a check was received from the bank in settlement of the assignment contract. In making the settlement, the bank deducted the interest charge for the corresponding period.

Problem 1: How much is the cash remittance from bank on September 1?