Вы находитесь на странице: 1из 1

PROBLEM 7

You have been engaged by DD Corporation to audit their financial statements as of and for the
period ended December 31, 2017. During the course of your audit, you were able to discover the
following:
 The entity decided to factor all of its accounts receivable on November 30, 2016, totalling
to P300,000. Commission is 5% and 10% is withheld by the bank to cover for any returns;
both based on the amount factored.
 The entity had P15,000 credit sales for December and collected P9,000.

Requirements:
1. What is the loss on factoring?
2. What is the balance of accounts receivable to be presented in the financial statements of
DD Corp. as of December 31, 2017?