agum Inc. required additional cash for its operation and used accounts receivable to raise such needed cash, as follows: On December 1, 2021 Tagum Inc. assigned on a non-notification basis accounts receivable of P 5,000,000 to a bank in consideration for a loan of 90% of the receivables less 5% service fee on the accounts assigned. Tagum Inc. signed a note for the bank loan. On December 31, 2021, Tagum Inc. collected assigned accounts of P3,000,000 less discount of P 200,000. Tagum Inc. 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. Tagum Inc. sold P 1,550,000 of accounts receivable for P 1,340,000 . The receivables had a carrying amount of P 1,470,000 and were sold outright on a nonrecourse basis. Tagum Inc. received an advance of P 300,000 from Union Bank by pledging P 360,000 of accounts receivable On June 30, 2021, Tagum Inc. discounted at a bank a customer’s P 600,000 , 6-month , 10% note receivable dated April 30, 2021. The bank discounted the note at 12% on the same date. .1. Accounts receivable pledged against borrowings should be A. Included in total receivables with disclosure B. Included in total receivables without disclosure C. Excluded from total receivables with disclosure D. Excluded from total receivables without disclosure 2. The proceeds from the note receivable discounted on June 30, 2021 is A. P 564,000 B. P 576,000 C. P 604,800 D. P 617,400
Tagum Inc. required additional cash for its operation and used
On December 1, 2021 Tagum Inc. assigned on a non-notification basis accounts receivable of P 5,000,000 to a bank in consideration for a loan of 90% of the receivables less 5% service fee on the accounts assigned. Tagum Inc. signed a note for the bank loan. On December 31, 2021, Tagum Inc. collected assigned accounts of P3,000,000 less discount of P 200,000. Tagum Inc. 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.
Tagum Inc. sold P 1,550,000 of accounts receivable for P 1,340,000 . The receivables had a carrying amount of P 1,470,000 and were sold outright on a nonrecourse basis.
Tagum Inc. received an advance of P 300,000 from Union Bank by pledging P 360,000 of accounts receivable
On June 30, 2021, Tagum Inc. discounted at a bank a customer’s P 600,000 , 6-month , 10% note receivable dated April 30, 2021. The bank discounted the note at 12% on the same date.
.1. Accounts receivable pledged against borrowings should be
A. Included in total receivables with disclosure
B. Included in total receivables without disclosure
C. Excluded from total receivables with disclosure
D. Excluded from total receivables without disclosure
2. The proceeds from the note receivable discounted on June 30, 2021 is
A. P 564,000
B. P 576,000
C. P 604,800
D. P 617,400
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
