On December 20, 2019, 2Gether, Inc. assigned Accounts Receivable amounting to 1 Million to NewLife Finance Company. The assignment serves as a collateral to a loan of P600,000 with a one-year term and 10% annual interest rate. NewLife Finance Company charges a 2% commission charge from the loan proceeds. 

On the last weeks of December, 2Gether, Inc. collected P245,000 (net of P5,000 cash discount) on the said assigned accounts. Afterwards, the company also had sales returns of P10,000 and write-offs of P9,000 from the assigned accounts.?

In the 2Gether Inc. Statement of Financial Position, how much should be presented as Accounts Receivable?

Answer rating: 100% (QA)

The initial assignment of accounts receivable amounted to 1 milli... View the full answer