Homework Answers
No journal entry is required for the assignment of the Accounts receivable of $ 1,000,000 to Easy Corporation as a security for a loan of $ 840,000. The Journal Entries are as follows:
(a) Journal entry when the loan was made
(b) Journal entries on collection of accounts receivable and first partial payment against loan.
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Part Three: Problem (8 points) On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS! Part Three: Problem On January 1, 2019, Jason Company...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
Part Three: Problem On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019....
Tamara Co, assigned $800,000 of accounts receivable to Rayan Finance Co. as security for a loan of $670,000. Rayan...
Tamara Co, assigned $800,000 of accounts receivable to Rayan Finance Co. as security for a loan of $670,000. Rayan charged a 2% commission on the amount of the loan, the interest rate on the note was 10%. During the first month, Tamara collected $220,000 on assigned accounts after deducting $760 of discounts. Tamara accepted returns worth $2,700 and wrote off assigned accounts totaling $5,960. 8. The amount of cash Tamara received from Rayan at the time of the transfer was
Geary Co. assigned $1,600,000 of accounts receivable to Kwik Finance Co. as security for a loan...
Geary Co. assigned $1,600,000 of accounts receivable to Kwik Finance Co. as security for a loan of $1,340,000. Kwik charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Geary collected $440,000 on assigned accounts after deducting $1,520 of discounts. Geary accepted returns worth $5,400 and wrote off assigned accounts totaling $11,920. Entries during the first month would include a A. debit to Cash of $441,520. B. debit...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with...
P8-7A On January 1, 2019, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance...
P8-7A On January 1, 2019, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2018. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $20,000 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company's $20,000, 3-month, 8% note for balance due. Feb. 18 Sold...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000,...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2019. Harter Company prepares financia December 31. During the year, the following selected transactions occurred. Jan. 5 20 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $20,000 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $20,000,...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000,...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2019. Harter Company prepares financia December 31. During the year, the following selected transactions occurred. Jan. 5 20 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $20,000 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $20,000,...
4. (10 points)On March 1, 2014, Rasheed Company assigns $800,000 of its accounts receivable to the...
4. (10 points)On March 1,
2014, Rasheed Company assigns $800,000 of its accounts receivable
to the Third National Bank as collateral for a $500,000 loan due
April 1, 2014. The assignment agreement calls for Rasheed Company
to continue to collect the receivables. Third National Bank
assesses a finance charge of 3% of the accounts receivable, and
interest on the loan is 9% (a realistic rate of interest for a note
of this type).a. Prepare the March 1, 2014, journal entry...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350 in its allowance for uncollectible accounts and a $587,400 debit balance in its accounts receivable account. The Company reported net credit sales of $4,500,000 during the first quarter. An analysis of Merle's trade accounts receivable at that date revealed the following: Days Past Due Amount Estimated uncollectible Current S124,000 3% 1-30 days 74.500 7% 31-60 days67,200 12% 61-90 days 45,700 30% Over 90 days...
Kerwick Company had accounts receivable of $100,000 on January 1, 2017. The only transactions that affected...
Kerwick Company had accounts receivable of $100,000 on January
1, 2017. The only transactions that affected accounts receivable
during 2017 were net credit sales of $1,000,000, cash collections
of $92,000 and accounts written off of $30,000.
a) Compute the ending balance of accounts receivable.
b) Compute the accounts receivable turnover for 2017.
c) Compute the average collection period in days.
(a) Beginning Accounts Receivable ADD: Net Credit Sales $ 100,000 $1,000,000 $150,000 Ending Accounts Receivable (b) Show your calculation below...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
Part Three: Problem On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019....
Tamara Co, assigned $800,000 of accounts receivable to Rayan Finance Co. as security for a loan of $670,000. Rayan charged a 2% commission on the amount of the loan, the interest rate on the note was 10%. During the first month, Tamara collected $220,000 on assigned accounts after deducting $760 of discounts. Tamara accepted returns worth $2,700 and wrote off assigned accounts totaling $5,960. 8. The amount of cash Tamara received from Rayan at the time of the transfer was
Geary Co. assigned $1,600,000 of accounts receivable to Kwik Finance Co. as security for a loan of $1,340,000. Kwik charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, Geary collected $440,000 on assigned accounts after deducting $1,520 of discounts. Geary accepted returns worth $5,400 and wrote off assigned accounts totaling $11,920. Entries during the first month would include a A. debit to Cash of $441,520. B. debit...
Part Two: Problem (10 points) On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with...
P8-7A On January 1, 2019, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2018. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $20,000 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company's $20,000, 3-month, 8% note for balance due. Feb. 18 Sold...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2019. Harter Company prepares financia December 31. During the year, the following selected transactions occurred. Jan. 5 20 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $20,000 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $20,000,...
Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4- month, 9% note dated December 31, 2019. Harter Company prepares financia December 31. During the year, the following selected transactions occurred. Jan. 5 20 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $20,000 of merchandise to Sheldon Company, terms n/15. Accepted Sheldon Company's $20,000,...
4. (10 points)On March 1,
2014, Rasheed Company assigns $800,000 of its accounts receivable
to the Third National Bank as collateral for a $500,000 loan due
April 1, 2014. The assignment agreement calls for Rasheed Company
to continue to collect the receivables. Third National Bank
assesses a finance charge of 3% of the accounts receivable, and
interest on the loan is 9% (a realistic rate of interest for a note
of this type).a. Prepare the March 1, 2014, journal entry...
Part Six: Problem. On March 31, 2019, Merle Company had an unadjusted debit balance of $12,350 in its allowance for uncollectible accounts and a $587,400 debit balance in its accounts receivable account. The Company reported net credit sales of $4,500,000 during the first quarter. An analysis of Merle's trade accounts receivable at that date revealed the following: Days Past Due Amount Estimated uncollectible Current S124,000 3% 1-30 days 74.500 7% 31-60 days67,200 12% 61-90 days 45,700 30% Over 90 days...
Kerwick Company had accounts receivable of $100,000 on January
1, 2017. The only transactions that affected accounts receivable
during 2017 were net credit sales of $1,000,000, cash collections
of $92,000 and accounts written off of $30,000.
a) Compute the ending balance of accounts receivable.
b) Compute the accounts receivable turnover for 2017.
c) Compute the average collection period in days.
(a) Beginning Accounts Receivable ADD: Net Credit Sales $ 100,000 $1,000,000 $150,000 Ending Accounts Receivable (b) Show your calculation below...
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