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On July 1, 2020, Julio Company assigned P1,000,000 accounts receivable to a bank to secure an P800,000 loan, with 1% monthly interest. The customer was not notified. Collections were: P200,000 in July P600,000 in August, and P200,000 in September. At the end of each month, the entity remitted the collections (or amount due) to the bank plus interest.
Problem 1: How much is the total interest expense incurred in 2020?
Problem 2: How much was the final payment to the bank?
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