On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the...

How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? *

P 1,800,000; 211,500

P 1,548,000; 306,000

P 1,588,500; P 319,500

P 1,584,000; P 306,000

P 1,588,500; P 324,000

P 1,584,000; P 216,000

Extracted text: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the bank. The bank charged the company 8.46% of the accounts receivable pledged as service charge deducted from the amount borrowed.