Wanda Company sold accounts receivable without recourse for P8,200,000. The company received P8,000,000 cash immediately from the factor. The remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts. What amount of loss on factoring should be recognized?

Wanda Company sold accounts receivable without recourse for P8,200,000. The company received P8,000,000 cash immediately from the factor. The remaining P200,000 will be received once the factor verifies that none of the accounts is in dispute. The accounts receivable had a face amount of P9,000,000. The company had previously established an allowance for doubtful accounts of P450,000 in connection with such accounts. What amount of loss on factoring should be recognized?

Name: Wanda Company sold accountsreceivable without recourse forP8,200,000.
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Description: Wanda Company sold accountsreceivable without recourse forP8,200,000. The companyreceived P8,000,000 cashimmediately from the factor. Theremaining P200,000 will bereceived once the factor verifiesthat none of the accounts is indispute. The accounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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