Reference no: EM132794945

Question - On Nov. 1, 2009, Zoo Corporation assigned specific accounts receivable totaling P3,000,000 as a collateral on a P2,400,000, 12% note from a certain bank. The entity will continue to collect the assigned accounts receivable. Of the receivables assigned, P1,600,000 was settled by customers as of Dec. 30. This resulted to total cash discount of P200,000. On Dec. 31, 2009, the entity remitted the collections until Dec. 30 to the bank in payment for the interest accrued up until December 31, 2009 and a portion of the note payable. If the related allowance for doubtful accounts is P60,000, what is the equity in the assigned accounts of Alpha on Dec. 31, 2009? Provide the solutions and journal entry.