Explorer Company finances some of its current operations by factoring its accounts receivable to a finance company. On July $1,2020,$ the company factored P$2,000,000$ of its accounts receivable to Atlas Finance Company. Purchase price was $85\%$ of the receivables factored. Atlas withheld $5\%$ of the purchase price as protection against sales returns and allowances. Sales returns recorded by Explorer on the factored accounts receivable totaled P$30,000$; the balance of the factor's holdback was settled by the finance company on August $31,2020.$

 REQUIRED: $$

$($a$)$ What was the net cash received by Explorer from this factored accounts?

 $($b$)$ Give the entries in the books of Explorer to record the foregoing in the months of July and August $2020.$ 

Answer rating: 100% (QA)

The question is talking about factoring accounts receivable which is when a business sells its accou... View the full answer