Problem

On June 30, Twain Co. has $145,600 of accounts receivable. Prepare journal entries to re...

On June 30, Twain Co. has $145,600 of accounts receivable. Prepare journal entries to record the following

selected July transactions. Also prepare any footnotes to the July 31 financial statements that result

from these transactions. (The company uses the perpetual inventory system.)

July 4 Sold $7,160 of merchandise (that had cost $4,582) to customers on credit.

9 Sold $20,300 of accounts receivable to Main Bank. Main charges a 5% factoring fee.

17 Received $3,938 cash from customers in payment on their accounts.

27 Borrowed $11,000 cash from Main Bank, pledging $14,700 of accounts receivable as security for the loan.

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Solutions For Problems in Chapter 9