What amount of loss on factoring should Hope World recognize

Assignment Help Accounting Basics
Reference no: EM133081525

Question - Hope World Company factored Php600,000 of accounts receivable to Hangsang Company on July 1, 2021. Control was surrendered by Hope World. Hangsang accepted the receivables subject to recourse for nonpayment. Hagsang assessed a fee of 2% and retains a holdback equal to 5% of the accounts receivable. The fair value of the recourse obligation is Php12,000.

1. Hope World will receive and record cash of

a. Php546,000

b. Php558,000

c. Php570,000

d. Php576,000

2. What amount of loss on factoring should Hope World company recognize?

a. None

b. Php12,000

c. Php24,000

d. Php42,000

Reference no: EM133081525

Questions Cloud

What would be the impact on DALA overall profits : DALA decides to sacrifice 100 units of sale to the existing customers to accommodate this special sale. What would be the impact on DALA's overall profits
Economy and industry and industry and company : Discuss the relationship, if any, between the economy and industry, and the industry and company.
Calculate the retirement benefit costs obligation : Her final-year salary is expected to be RM100,000. The discount rate is 10% per annum. Calculate the retirement benefit costs/ obligation
Persuasive statement on social responsibility : Provide a persuasive statement on social responsibility and the role that business leaders should play both locally and abroad.
What amount of loss on factoring should Hope World recognize : Hagsang assessed a fee of 2% and retains a holdback equal to 5% of the accounts receivable. What amount of loss on factoring should Hope World recognize
Why are ethics important : Why are Ethics Important. Why do you want to learn about ethics? What have you already learned about ethics and how have you formed your value system?
Calculate the present value of a perpetuity : Calculate the present value of a perpetuity that will pay out $7,500 every six months and the first payment is to be made four years from now
Determine the annual break-even point : Determine the annual break-even point (units and value) and margin of safety (units). Provide an interpretation of the results
Which amounts are relevant to the decision : Kitchener Ltd purchased a large quantity of special paper for $10,000. The cost of adding the additional cover is $1,700. Which amounts relevant to the decision

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the amount of interest capitalized

Construction expenditures for 2021, which were incurred evenly throughout the year, Calculate the amount of interest capitalized in 2021

  Describe the efile program

The CPA will need to follow the various statements as provided. There also is a professional code of ethics that is required of all CPAs.

  Prepare the adjusting journal entry to record bad debt

An aging of a company's accounts receivable indicates that $9000 are estimated to be uncollectible. Prepare the adjusting journal entry to record bad debt

  Investigate procedure that are require under corporation act

Investigate information about the role of the Australian Securities Exchange in society. Investigate the procedure that are required under Corporations Act 2001 to establish a small proprietary company.

  Calculate the residual income-EVA of Dynatech Hospitsal

Total interest expense was $1,320,000, and the hospital's tax rate was 20 percent. Calculate the residual income-EVA of Dynatech Hospitsal

  Describe the incremental approach to budgeting

What is the primary advantage of this approach? What is the primary disadvantage of this approach? Describe the incremental approach to budgeting.

  The following information relates to starbucks for 2007 net

the following information relates to starbucks for 2007 net income 672.638 million unrealized holding loss of 20.380

  Show the journal entries to be made by both Crane and Walsh

The building has a fair value of $ 22,500, a book value to Crane of $ 15,500, Show the journal entries to be made by both Crane and Walsh

  What is Terri net unearned income

Terri earned $5,000 in interest income and $3,000 from part-time jobs. What is Terri's net unearned income? What is Terri's taxable income

  What are possible reforms to increase the accountability

What appear to be the most pressing problems in corporate governance? What are possible reforms to increase the accountability of corporate managers

  Prepare journal entries to record December Payroll

J Company paid employees at the end of each month. Prepare journal entries to record December Payroll and the accrual of the employer's contribution

  What is the hurdle rate

Colonial has an ROI of 18% based on revenues of $306,000. The investment turnover is 1.5 and residual income is $19,992. What is the hurdle rate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd