Homework Answers
| Answer a. | ||||
| Books of Tower Inc. | ||||
| Journal Entry | ||||
| Date | Particulars | Dr. Amt. | Cr. Amt. | |
| 1-May | Cash Dr. | 2,79,000 | ||
| Due from Factor Dr. | 6,000 | $300,000 X 2% | ||
| Loss on Sale of Receivable Dr. | 15,000 | $300,000 X 5% | ||
| To Accounts Receivable | 300,000 | |||
| Answer b. | ||||
| Books of Casey Finance | ||||
| Journal Entry | ||||
| Date | Particulars | Dr. Amt. | Cr. Amt. | |
| 1-May | Accounts Receivable Dr. | 300,000 | ||
| To Due to Dexter | 6,000 | $300,000 X 2% | ||
| To Financing Revenue | 15,000 | $300,000 X 5% | ||
| To Cash | 2,79,000 | |||
| Answer c. | ||||
| Books of Tower Inc. | ||||
| Journal Entry | ||||
| Date | Particulars | Dr. Amt. | Cr. Amt. | |
| 1-May | Cash Dr. | 2,79,000 | ||
| Due from Factor Dr. | 6,000 | $300,000 X 2% | ||
| Loss on Sale of Receivable Dr. | 20,000 | $300,000 X 5% + $5,000 | ||
| To Accounts Receivable | 3,00,000 | |||
| To Recourse Liability | 5,000 | |||
Add Answer to:
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...
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...
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...
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...
Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is...
Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 4%, and 6% was retained to cover sales discounts, sales returns, and sales allowances. Maxwell estimates the recourse obligation at $5,800. Required: Prepare Maxwell’s journal entry to record this factoring of its accounts receivable.
Part A: (5 marks) On June 1, Tandu Ltd. factored $375,000 of its accounts receivable with...
Part A: (5 marks) On June 1, Tandu Ltd. factored $375,000 of its accounts receivable with Nambia Finance Corp. on a with recourse basis. The recourse provision has a fair value of $9,000 which represents Tandu's estimate of the cost of its agreement with Nambia to pay the amount of any receivables where the debtor fails to pay. Under the arrangement, Tandu Ltd. was to handle any disputes concerning service whereas Nambia Finance Corp. was to make the collections. Nambia...
6. (7 points) Wood Incorporated factored $300,000 of accounts receivable with Engram Factors Inc. on a...
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 Wood Inc.'s Journal Entry Accounts Debit Debit Credit Engram Factor...
Bramble Incorporated factored $163,900 of accounts receivable with Sunland Factors Inc on a without recourse basis....
Bramble Incorporated factored $163,900 of accounts receivable with Sunland Factors Inc on a without recourse basis. Sunland retains an amount equal to 6% of accounts receivable for possible adjustments. e sa 2% finance charge of the amount of accounts receivable and Prepare the journal entry for Bramble incorporated and Sunland Factors to record the factoring of the accounts receivable to Sunland. Of no entry is required for the amounts. Credit account titles are automatically indented when the amount is entered....
Martinez Incorporated factored $139,200 of accounts receivable with Sandhill Factors Inc, on a without-recourse basis. Sandhill...
Martinez Incorporated factored $139,200 of accounts receivable with Sandhill Factors Inc, on a without-recourse basis. Sandhill assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Martinez Incorporated and Sandhill Factors to record the factoring of the accounts receivable to Sandhill. If no entry is required, select "No Entry" for the account titles and enter for the amounts Credit account titles...
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...
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...
Part A: (5 marks) On June 1, Tandu Ltd. factored $375,000 of its accounts receivable with Nambia Finance Corp. on a with recourse basis. The recourse provision has a fair value of $9,000 which represents Tandu's estimate of the cost of its agreement with Nambia to pay the amount of any receivables where the debtor fails to pay. Under the arrangement, Tandu Ltd. was to handle any disputes concerning service whereas Nambia Finance Corp. was to make the collections. Nambia...
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 Wood Inc.'s Journal Entry Accounts Debit Debit Credit Engram Factor...
Bramble Incorporated factored $163,900 of accounts receivable with Sunland Factors Inc on a without recourse basis. Sunland retains an amount equal to 6% of accounts receivable for possible adjustments. e sa 2% finance charge of the amount of accounts receivable and Prepare the journal entry for Bramble incorporated and Sunland Factors to record the factoring of the accounts receivable to Sunland. Of no entry is required for the amounts. Credit account titles are automatically indented when the amount is entered....
Martinez Incorporated factored $139,200 of accounts receivable with Sandhill Factors Inc, on a without-recourse basis. Sandhill assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Martinez Incorporated and Sandhill Factors to record the factoring of the accounts receivable to Sandhill. If no entry is required, select "No Entry" for the account titles and enter for the amounts Credit account titles...
Most questions answered within 3 hours.
-
1. A manufacturer of processing chips knows that 2% of its chips
are defective in some...
asked 2 hours ago -
Discuss what you think the exit polls tell us about voters.
asked 2 hours ago -
The electron in a hydrogen atom can undergo a transition from
n=1 to n=6, absorbing a...
asked 3 hours ago -
Based on what you learned in chapter 11, why would an
individual with a high BMI...
asked 3 hours ago -
Assume the economy can be described by the consumption function
C = $300 billion + 0.9Y...
asked 3 hours ago -
Within an environment where change is needed, you must recognize
the obstacles that can make changes...
asked 2 hours ago -
Travelcraft, Inc., manufactures a complete line of fiberglass
suitcases and attaché cases. The firm has...
asked 3 hours ago -
1a.
During 2021, a company sells 270 units of inventory for $94
each. The company has...
asked 3 hours ago -
A 7.3 kg ladder, 1.92 m long, rests on two sawhorses, as shown
in Figure 20....
asked 3 hours ago -
What is an important first step when conducting a usability
study?
A) Develop measurable tasks that...
asked 3 hours ago -
Suppose Y ~ N(4,200) and Z ~ N(6,25) and Y and Z are
independent. What is...
asked 3 hours ago -
Define poikilotherm and homeotherm, highlighting how
they are different. Both homeotherms and poikilotherms do not have...
asked 3 hours ago