Katok Company factored P 750,000 of accounts receivable at year end. Control was surrendered. The factor accepted the accounts receivable subject to recourse for non-payment. The factor assessed a fee...

Katok Company factored P 750,000 of accounts receivable at year end. Control was surrendered.

The factor accepted the accounts receivable subject to recourse for non-payment.

The factor assessed a fee of 2% and retained a hold back equal to 4% of the accounts receivable

In addition, the factor charged 12% interest computed of 51 days.

What is the amount of cash initially received from the factoring?

a. 692,425
b. 720,000
c. 722,425
d. 705,000