Reference no: EM132583507

ABC Co. showed the following balances on December 31, 2018:

Accounts Receivable P2,000,000

Allowance for doubtful accounts (60,000)

The following transactions transpired for ABC Company during the year 2016:

1. On May 1, received a P300,000, six-month, 12% interest bearing note from Ed, a customer in settlement of an account.
2. On june 30, factored P400,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the mount factored.
3. On August 1, ABC discounted the Ed note at the bank at 15%.
4. On November 1, Ed defaulted on the P300,000 note. ABC company paid the bank the total amount due plus a P12,000 protest fee and other bank charges
5. On December 31, ABC Company assigned P600,000 of its accounts receivable to a bank under a nonnotification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.
6. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since default date.
7. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible.

Question 1. Amount of cash received on December 31 assignment of accounts receivable.

P450,000

P430,000

P480,000

Answer not given

P415,000

Question 2. Amount of cash received on June 30 factoring.

P300,000

Answer not given

P304,000

P380,000

P200,000

Question 3. Amount of cash received on December 31 collection of the account Ed.

P330,000

P336,000

P312,000

P318,000

Answer not given

Question 4. Amount paid on November 1 default on the P300,000 note.

P330,000

P336,000

P312,000

P318,000

Answer not given

Question 5. The net realizable value of the accounts receivable is

P1,520,000

P1,900,000

P1,235,000

P1,330,000

Answer not given