.Trillanes Company completed the following selected transactions during 2021: Oct. 1 Assigned accounts of P2,000,000 to Union Bank under a notification basis. Union made an advance of 75% and deducted a 6% finance charge based on the amount advanced. Oct. 31 Received notice from Union Bank that P1,000,000 assigned accounts had been collected, and that Union charged Trillanes 12% interest. The collection is applied first to interest, and the balance is applied to principal repayment. Nov. 30 Received notice from Union Bank that P800,000 had been collected. Union remitted to Trillanes the amount due to the latter, after deducting 12% interest on the loan balance. How much cash was received upon assignment of accounts receivable on October 1?
12.Trillanes Company completed the following selected transactions during 2021:
Oct. 1 Assigned accounts of P2,000,000 to Union Bank under a notification basis. Union made an advance of 75% and deducted a 6% finance charge based on the amount advanced.
Oct. 31 Received notice from Union Bank that P1,000,000 assigned accounts had been collected, and that Union charged Trillanes 12% interest. The collection is applied first to interest, and the balance is applied to principal repayment.
Nov. 30 Received notice from Union Bank that P800,000 had been collected. Union remitted to Trillanes the amount due to the latter, after deducting 12% interest on the loan balance.
How much cash was received upon assignment of accounts receivable on October 1?
Step by step
Solved in 2 steps
