Question

Question 8 - 1 View Policies Current Attempt in Progress Bramble Inc. factors receivables with a carrying amount of $202,200 to Joffrey Company for $177,700 on a with recourse basis. The recourse provision has a fair value of $1,850. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Bramble Inc. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Account Titles and Explanation Debit Credit Credit e Textbook and Media

how can I solve these two questions?

Answer 1

Solution :- . Journal Entry Account Titles and Explanation cash . loss on sales receivable Recourse Liability Accounts Receivable (to record loss on sales receivable) seplanation: Dcomputation of net proceeds Debit (5) Creditls) $177,700 $ 26,350 $1,850 $ 202,200 Cash Received Less: Recourse Licibility ... Net proceeds . Amount ($) $177,700 $(1,850) $ 175,85

2) computation of Gain of loss! Carrying value Less's tjet. Proceeds - Loss on sale of receivables : Amount ($) $ 202,200 $4175,850) $ 26,350

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