Homework Answers
| Fees on sale | 6000 | =200000*3% |
| Decrease in fair value | 5000 | =(200000*10%)-15000 |
| Loss on sale of Receivables | 11000 | |
| Assets | Decreased by | 11000 |
| Liabilties | would not change | 0 |
| Income before income taxes | Decreased by | 11000 |
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Logitech Corporation transferred $200,000 of accounts receivable to a local bank. The transfer was made without...
3. Logitech Corporation transferred $200,000 of accounts receivable to a local bank. The transfer was made...
3. Logitech Corporation transferred $200,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 90% of the factored amount to Logitech and retains the remaining 10%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 10% interest in the receivables of $18,000 (not including the 3% fee) What is...
BE 7-19 Factoring of accounts receivable Q107-8 Logitech Corporation transferred $100,000 of accounts receivable to a l...
BE 7-19 Factoring of accounts receivable Q107-8 Logitech Corporation transferred $100,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 85% of the factored amount to Logitech and retains the remaining 15%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 15% interest in the receivables of $11,000 (not...
Trell Corporation transferred $50,000 of accounts receivable to a local bank. The transfer was made ...
Trell Corporation transferred $50,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $8,000 (not including the 3%...
Mountain High Ice Cream Company transferred $75,000 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 $80,000 of accounts receivable to the Prudential Bank. The transfer...
Mountain High Ice Cream Company transferred $80,000 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 $7,000) less a 2% fee (2% of the total factored amount). 3 00:4701 Required: Prepare the journal entry to record the transfer on the...
Mountain High Ice Cream Company transferred $67,000 of accounts receivable to the Prudential Bank. The transfer...
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...
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...
Pimento & Cheese Sandwich Shoppe transferred $80,000 of accounts receivable to the Augusta Bank. The transfer...
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%...
Mountain High Ice Cream Company transferred $78,000 of accounts receivable to the Prudential Bank. The transfer...
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...
2. The Post, Inc. transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was...
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...
BE 7-19 Factoring of accounts receivable Q107-8 Logitech Corporation transferred $100,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 85% of the factored amount to Logitech and retains the remaining 15%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 15% interest in the receivables of $11,000 (not...
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 $80,000 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 $7,000) less a 2% fee (2% of the total factored amount). 3 00:4701 Required: Prepare the journal entry to record the transfer on the...
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...
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%...
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...
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