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Accounts Receivable Loan Transactions

The document shows journal entries for accounts receivable being assigned for cash, with 90% of the accounts receivable amount being received as cash upfront and the remaining balance paid later along with interest expense.

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Gwyneth Bajade
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48 views2 pages

Accounts Receivable Loan Transactions

The document shows journal entries for accounts receivable being assigned for cash, with 90% of the accounts receivable amount being received as cash upfront and the remaining balance paid later along with interest expense.

Uploaded by

Gwyneth Bajade
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Problem 2

Solutions:
Accounts Receivable - assigned ₱ 1,000,000
x 90%
Net cash proceeds
₱ 900,000

January 1, 2020
Accounts receivable - assigned ₱ 1,000,000
Accounts receivable ₱ 1,000,000
To separate the assigned accounts receivable.

Cash ₱ 900,000
Loans payable ₱ 900,000
To record the loan obtained from the company.

July 1, 2020
Cash ₱ 250,000
Accounts receivable - assigned ₱ 250,000
To record the collection of assigned accounts receivable

Loans payable ₱ 250,000


Cash ₱ 250,000
To record partial payment of loan.

December 31, 2020


Cash ₱ 250,000
Accounts receivable - assigned ₱ 250,000
To record the collection of assigned accounts receivable.

Loans payable ₱ 250,000


Interest expense ₱ 120,000
Cash ₱ 370,000

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