PONTEJO FINANCE CORPORATION purchases the accounts receivable of other companies on a without recourse, notification basis. At the time the receivables are factored, 15% of the amount factored is charged

PONTEJO FINANCE CORPORATION purchases the accounts receivable of other
companies on a without recourse, notification basis. At the time the receivables are
factored, 15% of the amount factored is charged to the client as commission and
recognized as revenue in PONTEJO’S books. Also, 10% of the receivables factored is
withheld by PONTEJO as protection against sales returns or other adjustments. This
amount credited by PONTEJO to the client Retainer account. At the end of each month,
payments are made by PONTEJO to its clients so that the balance in the Client Retainer
account is equal to 10% of unpaid factored receivables. Based on PONTEJO’S bad debt
loss experience, an allowance for bad debts of 5% of all factored receivables is to be
established, PONTEJO makes adjusting entries at the end of each month.
On January 3, 2023, PEPITO Company factored its accounts receivable totaling
P1,000,000. By January 31, P800,000 on these receivables had been collected by
PONTEJO .
25. The commission earned of PONTEJO Finance Corporation from PEPITO Company’s
accounts receivable factored is:
26. The proceeds received by PEPITO Company on the accounts factored is:
27. How much is the Client Retainer account of PONTEJO Finance Corporation at
January 31, 2023 is:
28. How much is the bad debts expense of PONTEJO Finance Corporation at January
31, 2023 is:

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