Homework Answers
Answer
| Date | Account Titles and Explanation | Debit | Credit |
| Cash | $ 350,625 | ||
| Due from factor | $ 9,375 | ||
| Loss from factor | $ 24,000 | ||
| Recourse liability | $ 9,000 | ||
| Accounts Receivable | $ 375,000 | ||
| (Sale of Receivable recorded) | |||
| Due from factor = $375000*.025 | $ 9,375 | ||
| Loss on factoring = 375000*.04+9000 | $ 24,000 |
Hit Thumbs up if satisfied
Have any query mention in comment section please
Thank you
Add Answer to:
Part A: (5 marks) On June 1, Tandu Ltd. factored $375,000 of its accounts receivable with...
Question 9 On May 1, Dexter, Inc. factored $1,290,000 of accounts receivable with Quick Finance on...
Question 9 On May 1, Dexter, Inc. factored $1,290,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 1% of the total receivables to cover sales discounts. Prepare the journal entry...
On July 15, Central States Corporation factored $250.000 of accounts receivable with Franklin Factors on a without...
On July 15, Central States Corporation factored $250.000 of accounts receivable with Franklin Factors on a without recourse basis. Under the arrangement, Central was to handle disputes concerning service, and Franklin Factors was to make the collections, handle the sales discounts and absorb the credit losses. Franklin assessed a finance charge of 4% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. (2 points) (a) Prepare the journal...
6 points) Lucy factored $2,500,000 of accounts receivable with Ethel on a with recourse basis on ...
6 points) Lucy factored $2,500,000 of accounts receivable with Ethel on a with recourse basis on May 1. (Assume the transaction meets the criteria to be classified as a sale.) Ethel assessed a finance charge of $12,500. Ethel retained an amount equal to 1% of the total ARs factored to cover sales returns. Lucy estimated her recourse liability to be $70,000. During May and June, customers returned merchandise to Lucy on $22,000 of credit sales. All of the returns related...
P -Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the...
P -Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the following balances $300,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances 5,000 1,700,000 80,000 Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of...
(4 points) Lucy factored $2,500,000 of accounts receivable with Ethel on a without recourse basis on...
(4 points) Lucy factored $2,500,000 of accounts receivable with Ethel on a without recourse basis on May 1. Ethel assessed a finance charge of $15,000. Ethel retained an amount equal to 5% of the total ARs factored to cover sales returns. During May and June, customers returned merchandise to Lucy on $115,000 of credit sales. All of these returns related to receivables from the $2,500,000 pool of ARs sold. After taking the returns into consideration, Ethel collected $2,381,000 of the...
E7.5 (LO 4, 5, 7) (Journalizing Various Receivable Transactions) Information on Janut Corp., which reports under...
E7.5 (LO 4, 5, 7) (Journalizing Various Receivable Transactions) Information on Janut Corp., which reports under ASPE, follows: July 1 Janut Corp. sold to Harding Ltd. merchandise having a sales price of $9,000, terms 2/10, n/60. Ignore cost of goods sold entry. 3 Harding Ltd. returned defective merchandise having a sales price of $700. The merchandise was not saleable and was scrapped. 5 Accounts receivable of $19,000 are factored with Jackson Credit Corp. without recourse at a financing charge...
Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control...
Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbrough. Duff accepted the receivables subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed on a weighted-average time to maturity of the receivables of fifty-four days. The fair value of the recourse obligation is $9,000. Scarbrough will receive and record cash...
On May 1, Tower, Inc. factored $300,000 of accounts receivable with Casey Finance on a without service, and CaseyF absorb the credit losses Casey Finance receivable factored and retained an amoun...
On May 1, Tower, Inc. factored $300,000 of accounts receivable with Casey Finance on a without service, and CaseyF absorb the credit losses Casey Finance receivable factored and retained an amount equal to 2% of the total basis. Under the arr was to make the collections, handle the sales s to (a) Prepare the journal entry required on Tower's books on May 1 (b) Prepare the journal entry required on Casey Finance's books on May 1 (c) Assume Tower factors...
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...
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...
Question 9 On May 1, Dexter, Inc. factored $1,290,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 1% of the total receivables to cover sales discounts. Prepare the journal entry...
On July 15, Central States Corporation factored $250.000 of accounts receivable with Franklin Factors on a without recourse basis. Under the arrangement, Central was to handle disputes concerning service, and Franklin Factors was to make the collections, handle the sales discounts and absorb the credit losses. Franklin assessed a finance charge of 4% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. (2 points) (a) Prepare the journal...
P -Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the following balances $300,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances 5,000 1,700,000 80,000 Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of...
On May 1, Tower, Inc. factored $300,000 of accounts receivable with Casey Finance on a without service, and CaseyF absorb the credit losses Casey Finance receivable factored and retained an amount equal to 2% of the total basis. Under the arr was to make the collections, handle the sales s to (a) Prepare the journal entry required on Tower's books on May 1 (b) Prepare the journal entry required on Casey Finance's books on May 1 (c) Assume Tower factors...
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...
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...
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 26 minutes ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 1 hour ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 1 hour ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 3 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 4 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 4 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 4 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 5 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 5 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 5 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 5 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 6 hours ago