Abel Company sold accounts receivable without recourse with a face amount of P4,000,000. The factor charged a service fee of 10% of the accounts factored and withheld 5% of the accounts factored as...

Abel Company
sold accounts receivable without recourse with a face amount of P4,000,000. The factor charged a service fee of 10% of the accounts factored and withheld 5% of the accounts factored as protection against customer returns and other adjustments. Jazz previously established an allowance for doubtful accounts of 8% of the accounts factored. How much is the gain or loss on factoring?