Reference no: EM132934981

Questions -

Q1) ABC Department store had the following credit card transactions related to year 2020: - Total sales charged by customers are as follows: Eastwest bank P 1,000,000 BDO 750,000 Credit card receipts charged to BDO are credited directly to ABC Department store, net 3% of service charge. Eastwest bank charges also a credit card service charge of 3% upon deposit to ABC Department store. At the end of the year, no collections yet were received from Eastwest bank. How much accounts receivable must be recognized at year end related to the credit card sales during the year?

Q2) On January 1, 2020, BTS Company engaged in the following transactions: a. Obtained a P1,000,000, six-month loan from Kpopbank. Discounted at 12%. The company pledged P1,000,000 of accounts receivable as security for a loan. b. Factored P2,000,000 of accounts receivable without recourse on a notification basis with Dynamite Family Financing Company. Dynamite Family charged a factoring fee of 2% of the amount of receivable factored and withheld 10% of the amount factored. What is the total cash received from financing of receivables?