Question

help chapter 7 accounting homework!!

jork Saved Help Save & Exit Submi Check my work Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $890,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 4% fee (4% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $69,000. Required: Prepare the journal entry for Samson Wholesale Beverage for the transfer of accounts receivable on April 30, assuming the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) dook View transaction lit Journal entry worksheet Record the transfer of accounts receivable on April 30. Enter der before cres

Answer 1

Date	Particulars	Debit($)	Credit($)
April30,2011	Cash	801000		890000*.90
	Loss on sale of receivables	55,600		Balancing figure
	Receivable from factor	33400		69000-(890000*.04)
	Accounts receivables		8,90,000
	(To recording the factoring of receivables without recourse)

Hi mate,

I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.

In case of doubt, please comment. I will consider myself fortunate if I can help you.

All the best for your bright future.