No | Event | General Journal | Debit | Credit |
1 | 1 | Cash | $ 72,000 | |
Receivable from factor | $ 5,400 | |||
Loss on Sale of receivables | $ 2,600 | |||
Amount receivable | $ 80,000 | |||
Workings: | ||||
Cash | = | $80000 X 90% | ||
= | $ 72,000 | |||
Receivable from factor | = | $7000 - ($80000 X 2%) | ||
= | $ 5,400 |
Mountain High Ice Cream Company transferred $80,000 of accounts receivable to the Prudential Bank. The transfer...
Mountain High Ice Cream Company transferred $75,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables. It will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,500) less a 3%fee (3% of the total factored amount) Required: Prepare the journal entry to record the transfer on the books of Mountain...
Mountain High Ice Cream Company transferred $67,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,700) less a 3% fee (3% of the total factored amount) Required: Prepare the journal entry to record the transfer on the books of...
Mountain High Ice Cream Company transferred $71,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,100). Mountain High anticipates a $4,100 recourse obligation. The bank charges a 3% fee (3% of $71,000), and...
Mountain High Ice Cream Company transferred $71,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,100). Mountain High anticipates a $4,100 recourse obligation. The bank charges a 3% fee (3% of $71,000), and...
Mountain High Ice Cream Company transferred $74.000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain Hiah and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,400). Mountain High anticipates a $4,400 recourse obligation. The bank charges a 2% fee (2% of $74,000), and...
Mountain High Ice Cream Company transferred $78,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,800). Mountain High anticipates a $4,800 recourse obligation. The bank charges a 2% fee (2% of $78,000), and...
5 Mountain High Ice Cream Company reports under IFRS. Mountain High transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000). Mountain High anticipates a $3,000 recourse obligation. The bank charges a...
2. The Post, Inc. transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to The Post, Inc. and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to The Post, Inc. the retained amount (which The Post, Inc. estimate has a fair value of $5,000). The Post, Inc. anticipates a $3,000 recourse obligation. The bank charges a 2% fee...
11-8 Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,430 at the beginning of 2018 and a $22,710 credit balance at the end of 2018 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statements for 2018 would have included bad debt expense of $17,400 and revenue of $2,500 from the collection of previously written...
Pimento & Cheese Sandwich Shoppe transferred $80,000 of accounts receivable to the Augusta Bank. The transfer was made with recourse. Augusta remits 80% of the factored amount to Pimento & Cheese and retains 20% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Pimento & Cheese the retained amount (which Pimento & Cheese estimates has a fair value of $12.000). Pimento & Cheese anticipates a $6,000 recourse obligation. The bank charges a 4%...