Reference no: EM133067449
Questions -
Q1. On December 1, 2021, Bamboo Company assigned a specific accounts receivable totaling P2,000,000 as collateral on a , P1,500,000, 12% note from a certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the P1,500,000 value of the note. The December collections of assigned accounts receivable amounted to P1,000,000 less cash discounts of P50,000. On December 31, 2021, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2021 and the note payable.
What amount of cash was received from the assignment of accounts receivable on December 1, 2021?
What is the carrying amount of note payable on December 31, 2021?
What amount should be disclosed as the equity of Bamboo Company in assigned accounts on December 31, 2021?
Q2. Maine Company assigned a P3,000,000.00 of accounts receivable as collateral for a P2,000,000.00 loan with a bank. The bank assessed a 4% finance fee and charged 6% interest on the note at maturity. What would be the journal entry to record the transaction?
Q3. 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?
Q4. Jin Company sells merchandise at a gross profit of 30%. On June 30, 2020, all of the inventory was destroyed by fire. The following pertain to the operations for the six months ended June 30.
Net sales 8,000,000
Beginning inventory 2,000,000
Net purchases 5,200,000
What is the estimated cost of the destroyed inventory?
Q5. Revonce Company sells merchandise on a consignment basis to dealers .The selling price of the merchandise averages 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during 2020:
Manufacturing cost of goods shipped on consignment 8,800,000
Sales price of merchandise sold by dealers 9,600,000
Payments remitted by dealers after deducting commission 6,300,000
What is the gross profit on sales?