Grateful Company Provided the following transactions: July 1 The entity assigned P500,000 of accounts receivable to...

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Grateful Company Provided the following transactions: July 1 The entity assigned P500,000 of accounts receivable to its bank on a non-notification basis in consideration for a loan. On this date, the bank advanced P400,000 less a service charge of 2% the total accounts assigned, and the entity signed a promissory note bearing interest of 1% of per month on the unpaid balance at the beginning of the month. Aug. 1 Collected P330,000 on assigned accounts. The entity remitted this amount to the bank in payment first for the interest and the balance to the principal. Sept. 1 Collected the remaining balance of assigned balance. REQUIRED: Prepare journal entries to record the transactions. 2015 Jul. 1 Accounts Receivable - assigned Accounts Receivable Cash Service Charge Note payable - bank Aug. 1 Cash Accounts Receivable - assigned Interest Expense Note payable - bank Cash Sept. 1 Cash Accounts Receivable - assigned Interest Expense accounts. The entity paid off the remaining loan 500,000 390,000 10,000 500,000 330,000 170,000 400,000 740 4,000 326,000 330,000 330,000 170,000 Grateful Company Provided the following transactions: July 1 The entity assigned P500,000 of accounts receivable to its bank on a non-notification basis in consideration for a loan. On this date, the bank advanced P400,000 less a service charge of 2% the total accounts assigned, and the entity signed a promissory note bearing interest of 1% of per month on the unpaid balance at the beginning of the month. Aug. 1 Collected P330,000 on assigned accounts. The entity remitted this amount to the bank in payment first for the interest and the balance to the principal. Sept. 1 Collected the remaining balance of assigned balance. REQUIRED: Prepare journal entries to record the transactions. 2015 Jul. 1 Accounts Receivable - assigned Accounts Receivable Cash Service Charge Note payable - bank Aug. 1 Cash Accounts Receivable - assigned Interest Expense Note payable - bank Cash Sept. 1 Cash Accounts Receivable - assigned Interest Expense accounts. The entity paid off the remaining loan 500,000 390,000 10,000 500,000 330,000 170,000 400,000 740 4,000 326,000 330,000 330,000 170,000

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Note payable bank 0 Accounts Receivable 500000 To record the ... View the full answer