Lea Company factored P 5,000,000 of accounts receivable. Control was surrendered by the entity. The finance company assessed of 2% and retains a hold back equal to 10% of the accounts receivable. In addition, the finance company charged 12% interest computed on a weighted average time to maturity of the accounts receivable for 30days? 1. What is the amount initially received from the factoring of accounts receivable? a. 4,250,000 b. 4,200,000 c. 4,700,685 d. 4,200,685 2. What total amount should be recognized as loss on factoring? a. 299,315 b. 799,315 c. 250,000 d. 0
Lea Company factored P 5,000,000 of accounts receivable. Control was surrendered by the entity. The finance company assessed of 2% and retains a hold back equal to 10% of the accounts receivable. In addition, the finance company charged 12% interest computed on a weighted average time to maturity of the accounts receivable for 30days? 1. What is the amount initially received from the factoring of accounts receivable? a. 4,250,000 b. 4,200,000 c. 4,700,685 d. 4,200,685 2. What total amount should be recognized as loss on factoring? a. 299,315 b. 799,315 c. 250,000 d. 0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Lea Company factored P 5,000,000 of accounts receivable. Control was surrendered by the entity. The finance company assessed of 2% and retains a hold back equal to 10% of the accounts receivable. In addition, the finance company charged 12% interest computed on a weighted average time to maturity of the accounts receivable for 30days?
1. What is the amount initially received from the factoring of accounts receivable?
a. 4,250,000 b. 4,200,000 c. 4,700,685 d. 4,200,685
2. What total amount should be recognized as loss on factoring?
a. 299,315 b. 799,315 c. 250,000 d. 0
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