Homework Answers
Correct answer------------loss of $312,000
Working
The loss will be equal to the finance charge to be paid to the factor.
Following journal entry will be made for sale of receivable.
| Account title and explanation | Debit | Credit |
| Cash | $ 4,316,000.00 | |
| Due from Factor | $ 572,000.00 | |
| Loss on sale of receivables | $ 312,000.00 | |
| Accounts Receivables | $ 5,200,000.00 |
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Marigold Corp. factors $5200000 of its accounts receivables without recourse for a finance charge of 6%....
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Swifty Corporation factors $5100000 of its accounts receivables with recourse for a finance charge of 2%. The finance company retains an amount equal to 11% of the accounts receivable for possible adjustments. Swifty estimates the fair value of the recourse liability at $214000. What would be recorded as a gain (loss) on the transfer of receivables? Loss of $316000. Loss of $214000. Gain of $102000. Gain of $877000.
Sun Inc. factors $2,000,000 of its Accounts receivable without recourse for a finance charge of 5%. The finance company...
Sun Inc. factors $2,000,000 of its Accounts receivable without recourse for a finance charge of 5%. The finance company retains an amount equal to 10% of Accounts receivable for possible adjustments. An external appraiser expects $75,000 of Accounts receivable to be uncollectible. What would be recorded as a gain (loss) on the sale of receivables?
X Your answer is incorrect. Swifty Corporation factors $6500000 of its accounts receivables with recourse for...
X Your answer is incorrect. Swifty Corporation factors $6500000 of its accounts receivables with recourse for a finance charge of 5%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Swifty estimates the fair value of the recourse liability at $224000. What would be recorded as a gain (loss) on the transfer of receivables? Loss of $549000. Loss of $224000. Gain of $325000. Gain of $1199000.
Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%....
Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. What amount of cash would Ming receive as a result of this initial transaction? A. $5,520,000 B. $5,160,000 C. $5,640,000 D. $6,000,000
Wildhorse Corp. factors $441,000 of accounts receivable with Sheffield Finance Corporation on a without recourse basis...
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Sheffield Corp. factors $414,000 of accounts receivable with Tamarisk Finance Corporation on a without recourse basis...
Sheffield Corp. factors $414,000 of accounts receivable with Tamarisk Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Tamarisk Finance, which will receive the collections. Tamarisk Finance assesses a finance charge of 1.60% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Your answer has been saved. See...
BLANK Corp. factors $440,000 of accounts receivable with BLANK Finance Corporation on a without recourse basis...
BLANK Corp. factors $440,000 of accounts receivable with BLANK
Finance Corporation on a without recourse basis on July 1, 2017.
The receivables records are transferred to BLANK Finance, which
will receive the collections. BLANK Finance assesses a finance
charge of 1.90% of the amount of accounts receivable and retains an
amount equal to 6% of accounts receivable to cover sales discounts,
returns, and allowances. The transaction is to be recorded as a
sale.
Prepare the journal entry on July 1,...
Task #3 (Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors S262,500 of accounts...
Task #3 (Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors S262,500 of accounts receivable with Sultanali Financing, Inc. on with basis. Sultanali Financing will collect the receivables. The receivables records are transferred to Sultanali Financial on August 15, 2019. Sultanali Financing assesses a finance charge of 3% of the amount of accounts receivable also reserves an amount equal to 5% of accounts receivable to cover probable adjustments Instructions A Prepare the journal entry on August 15, 2019....
Task #3 ( Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors $262,500 of...
Task #3 ( Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors $262,500 of accounts receivable with Sultanali Financing, Inc. on a with recourse basis. Sultanali Financing will collect the receivables. The receivables records are transferred to Sultanali Financing on August 15, 2019. Sultanali Financing assesses a finance charge of 3 % of the amount of accounts receivable and also reserves an amount equal to 5% of accounts receivable to cover probable adjustments. Instructions A. Prepare the journal...
6. (7 points)Wood Incorporated factored $300,000 of accounts receivable with Engram Factors Inc. on a without...
6. (7 points)Wood Incorporated
factored $300,000 of accounts receivable with Engram Factors Inc.
on a without recourse basis. Engram assesses a 3.50% finance charge
of the amount of accounts receivable and retains an amount equal to
7% of accounts receivable for possible adjustments.Prepare the
journal entry for Wood to record the sale. Also, record the journal
entry for Engram Factors, Inc. to record the purchase of the
receivables
6. (7 points) Wood Incorporated factored $300,000 of accounts receivable with Engram...
Swifty Corporation factors $5100000 of its accounts receivables with recourse for a finance charge of 2%. The finance company retains an amount equal to 11% of the accounts receivable for possible adjustments. Swifty estimates the fair value of the recourse liability at $214000. What would be recorded as a gain (loss) on the transfer of receivables? Loss of $316000. Loss of $214000. Gain of $102000. Gain of $877000.
X Your answer is incorrect. Swifty Corporation factors $6500000 of its accounts receivables with recourse for a finance charge of 5%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Swifty estimates the fair value of the recourse liability at $224000. What would be recorded as a gain (loss) on the transfer of receivables? Loss of $549000. Loss of $224000. Gain of $325000. Gain of $1199000.
Wildhorse Corp. factors $441,000 of accounts receivable with Sheffield Finance Corporation on a without recourse basis on July 1, 2020 The receivables records are transferred to Sheffield Finance, which will receive the collections. Sheffield Finance assesses a finance charge of 1.80% of the amount of accounts receivable and retains an amount equal to 6 % of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale (a) Your answer is correct Prepare...
Sheffield Corp. factors $414,000 of accounts receivable with Tamarisk Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Tamarisk Finance, which will receive the collections. Tamarisk Finance assesses a finance charge of 1.60% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Your answer has been saved. See...
BLANK Corp. factors $440,000 of accounts receivable with BLANK
Finance Corporation on a without recourse basis on July 1, 2017.
The receivables records are transferred to BLANK Finance, which
will receive the collections. BLANK Finance assesses a finance
charge of 1.90% of the amount of accounts receivable and retains an
amount equal to 6% of accounts receivable to cover sales discounts,
returns, and allowances. The transaction is to be recorded as a
sale.
Prepare the journal entry on July 1,...
Task #3 (Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors S262,500 of accounts receivable with Sultanali Financing, Inc. on with basis. Sultanali Financing will collect the receivables. The receivables records are transferred to Sultanali Financial on August 15, 2019. Sultanali Financing assesses a finance charge of 3% of the amount of accounts receivable also reserves an amount equal to 5% of accounts receivable to cover probable adjustments Instructions A Prepare the journal entry on August 15, 2019....
Task #3 ( Transfer of Receivables without Recourse and with Recourse) Strassner Corporation factors $262,500 of accounts receivable with Sultanali Financing, Inc. on a with recourse basis. Sultanali Financing will collect the receivables. The receivables records are transferred to Sultanali Financing on August 15, 2019. Sultanali Financing assesses a finance charge of 3 % of the amount of accounts receivable and also reserves an amount equal to 5% of accounts receivable to cover probable adjustments. Instructions A. Prepare the journal...
6. (7 points)Wood Incorporated
factored $300,000 of accounts receivable with Engram Factors Inc.
on a without recourse basis. Engram assesses a 3.50% finance charge
of the amount of accounts receivable and retains an amount equal to
7% of accounts receivable for possible adjustments.Prepare the
journal entry for Wood to record the sale. Also, record the journal
entry for Engram Factors, Inc. to record the purchase of the
receivables
6. (7 points) Wood Incorporated factored $300,000 of accounts receivable with Engram...
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