Problem 8-6 (ACP) Bleak Company provided the following information: Dec. 1 Assigned P1,500,000 of accounts receivable to a bank on a nonnotification basis in consideration for a loan. The bank...

Extracted text: Problem 8-6 (ACP) Bleak Company provided the following information: Dec. 1 Assigned P1,500,000 of accounts receivable to a bank on a nonnotification basis in consideration for a loan. The bank advanced P1,300,000 less a service charge of P50,000. The entity signed a promissory note bearing interest of 1% per month on the unpaid loan balance. 31 Collected assigned accounts of P1,000,000 less sales discount of P30,000. 31 Remitted the collection to the bank in payment first for the interest and the balance to the principal. Required: a. Prepare journal entries to record the transactions. b. Indicate the classification and disclosure of the accounts related to the assignment on December 31.