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Question - On December 1, 2019, Mickey Company assigned 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 in 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 P1,200.000 fewer cash discounts of P100,000. On December 31, 2019, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2019, and the note payable. What is the carrying amount of notes payable on December 31, 2019?
Requirements - Allocate the service department costs to the operating departments using the step-down method. Show your work
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