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Receivable Financing April 3 2025

The document outlines various financial problems related to cash, factoring fees, accounts receivable, and losses on factoring and discounting notes receivable. Each problem presents calculations involving cash received, fees, holdbacks, and allowances for doubtful accounts. The problems illustrate different scenarios of receivable financing and their impact on financial statements.

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23 views8 pages

Receivable Financing April 3 2025

The document outlines various financial problems related to cash, factoring fees, accounts receivable, and losses on factoring and discounting notes receivable. Each problem presents calculations involving cash received, fees, holdbacks, and allowances for doubtful accounts. The problems illustrate different scenarios of receivable financing and their impact on financial statements.

Uploaded by

c.rivera.560112
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Problem 7-13

Cash 5,000,000.00
Factors Holdback 300,000.00
Allowance for Doubtful Accounts 250,000.00
Loss on Factoring 450,000.00
Accounts Receivable

Problem 7-14

Cash 1,840,000.00
Factoring Fee (P 2,000,000 x 3%) 60,000.00
Factors Holdback (P 2,000,000 x 5%) 100,000.00
Accounts Receivable

Problem 7-15

Cash 4,300,000.00
Factoring Fee (P 6,000,000 x 15%) 900,000.00
Factors Holdback (P 6,000,000 x 10%) 600,000.00
Allowance for Doubtful Accounts 200,000.00
Accounts Receivable

Cash 600,000.00
Factors Holdback

Problem 7-16

Cash 6,701,369.86
Factoring Fee (P 8,000,000 x 5%) 400,000.00
Factors Holdback (P 8,000,000 x 10%) 800,000.00
Interest Expense (P 8,000,000 x 15% x 30/365) 98,630.14
Loss on Recourse Obligation 300,000.00
Accounts Receivable
Liability on Recourse Obligation

Loss on Factoring (P 400,000 + 98,630.14 + 300,000)

Problem 7-17

Cash 692,424.66
Factoring Fee (P 750,000 x 2%) 15,000.00
Factor's Holdback (P 750,000 x 4%) 30,000.00
Loss on Recourse Obligation 20,000.00
Interest Expense (P 750,000 x 12% x 51/365) 12,575.34
Accounts Receivable
Liability on Recourse Obligation

Loss on Factoring (P 15,000 + 20,000 + 12,575.34)

Problem 7-18

Jul. 1, 2024 Cash 1,400,000.00


Loss on Factoring 100,000.00
Accounts Receivable

Dec. 15, 2024 Cash 2,450,000.00


Finance Charge (P 2,500,000 x 2%) 50,000.00
Notes Payable

Accounts Receivable - Assigned 5,000,000.00


Accounts Receivable

Doubtful Accounts Expense (P 5,000,000 x 10%) 500,000.00


Allowance for Doubtful Accounts

Factoring
Assignment
Total proceeds from Receivable Financing

A/R Assigned
A/R Unassigned
Less: Allowance for Doubtful Accounts (P 100,000 + 500,000)
Accounts Receivable, Net

Problem 8-6

Principal of the Notes Receivable 6,000,000.00


Interest on Maturity (P 6,000,000 x 10% x 9/12) 450,000.00
Maturity Value 6,450,000.00
Discount (P 6,450,000 x 12% x 6/12) 387,000.00
Net Proceeds 6,063,000.00

Apr. 1, 2024 Cash 6,063,000.00


Loss on Discounting 87,000.00
Notes Receivable - Discounted
Interest Income (P 6,000,000 x 10% x 3/12)

Oct. 1, 2024 Notes Receivable - Discounted 6,000,000.00


Notes Receivable
Accounts Receivable 6,500,000.00
Cash (P 6,450,000 + 50,000)

Dec. 31, 2024 Cash 6,695,000.00


Accounts Receivable
Interest Income (P 6,500,000 x 12% x 3/12)

Problem 8-7

Principal of the Notes Receivable 500,000.00


Interest on Maturity (P 500,000 x 8%) 40,000.00
Maturity Value 540,000.00
Discount (P 540,000 x 10% x 6/12) 27,000.00
Net Proceeds 513,000.00

Cash 513,000.00
Loss on Discounting 7,000.00
Notes Receivable - Discounted
Interest Income (P 500,000 x 8% x 6/12)

Problem 8-8

Principal/Maturity Value of the Notes Receivable 2,000,000.00


Discount (P 2,000,000 x 10% x 6/12) 100,000.00
Net Proceeds 1,900,000.00

Cash 1,900,000.00
Loss on Discounting 100,000.00
Notes Receivable

Problem 8-9

Principal of the Notes Receivable 4,000,000.00


Interest on Maturity (P 4,000,000 x 12% x 90/360) 120,000.00
Maturity Value of the Notes Receivable 4,120,000.00
Less: Discount (P 4,120,000 x 15% x 60/360) 103,000.00
Net Proceeds 4,017,000.00

Cash 4,017,000.00
Loss on Discounting 23,000.00
Notes Receivable
Interest Income (P 4,000,000 x 12% x 30/360)

Problem 8-10
Principal of the Notes Receivable 6,000,000.00
Interest on Maturity (P 6,000,000 x 10% x 6/12) 300,000.00
Maturity value 6,300,000.00
Discount (P 6,300,000 x 12% x 4/12) 252,000.00
Net Proceeds 6,048,000.00

Cash 6,048,000.00
Loss on Discounting 52,000.00
Notes Receivable - Discounted
Interest Income (P 6,000,000 x 10% x 2/12)

Problem 8-11

Principal of the Notes Receivable 1,000,000.00


Interest on Maturity (P 1,000,000 x 8% x 6/12) 40,000.00
Maturity Value 1,040,000.00
Less: Discount (P 1,040,000 x 10% x 6/12) 52,000.00
Net Proceeds 988,000.00

Cash 988,000.00
Loss on Discounting 12,000.00
Notes Receivable

Problem 8-12

Principal of the Notes Receivable 500,000.00


Interest on Maturity (P 500,000 x 10%) 50,000.00
Maturity Value 550,000.00
Less: Discount (P 550,000 x 12% x 6/12) 33,000.00
Net Proceeds 517,000.00

Cash 517,000.00
Loss on Discounting 8,000.00
Notes Receivable - Discounted
Interest Income (P 500,000 x 10% x 6/12)
6,000,000.00

2,000,000.00

6,000,000.00

600,000.00

8,000,000.00
300,000.00

798,630.14

750,000.00
20,000.00

47,575.34

1,500,000.00

2,500,000.00

5,000,000.00

500,000.00

1,400,000.00
2,450,000.00
3,850,000.00

5,000,000.00
1,000,000.00
(600,000.00)
5,400,000.00

6,000,000.00
150,000.00

6,000,000.00
6,500,000.00

6,500,000.00
195,000.00

500,000.00
20,000.00

2,000,000.00

4,000,000.00
40,000.00
6,000,000.00
100,000.00

1,000,000.00

500,000.00
25,000.00

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