Reference no: EM133088523

Question - On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000.

What is the balance of accounts receivable assigned on December 31, 2020?

In the preceding problem, what is the carrying amount of the note payable on December 31, 2020?

In the preceding problem, what is the equity of the assignor in assigned accounts on December 31, 2020?