On June , 2019 , XYZ Company factored receivables of \$700,000 to ABC Company . ABC Company assesses a finance charge of 1% of the receivables and retains 4% of the receivables . Assume that XYZ Company factors the receivables on a without guarantee (without recourse ) basis . The journal entry to be recorded by XYZ company is:

Q: On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a carrying amount of…

A: ANSWER   On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a…

Q: SAOD Company sold merchandise for $300,000 to RELANSE Company on January 1, 2021 and received a…

A: As per the term of restructuring on Dec 31, 2021, the Relanse Company will pay 210000 at the end of…

Q: On January 31$t, 2021, X Co. transfers $400,000 in receivables to Cater Finance with recourse. Cater…

A: Amount Retained by Cater Finance:  Factored Receivables $  400,000    10% of Factored…

Q: On December 31,2021, Teresa Co. sold goods costing ₱300,000 and with sales price of ₱550,000 to…

A: On 31.12.2021, Teresa Co. sold goods to Perfina Inc. on account = P550000 Cost of sales = P300000…

Q: returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring…

A: As each customer a/c balance cannot be shown in financials, the Accounts Receivables account is used…

Q: On April 1, 2020, Super Enterprises sold $750,000 of accounts receivable to Convenience Factors,…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: Sheffield Company had the following select transactions. Apr. 1, 2020   Accepted Goodwin Company’s…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: rns, and allowances. The transaction is to be recorded as a sale. Instructions: a) Prepare the…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Sakuragi Corporation engaged in the following transactions with regards to financing of receivable…

A:

Q: On January 1, 2021, Hestia Bank extended a 12%, P1,000,000 loan to Ares, Inc. Principal is due on…

A: Amount of loan is P1,000,000. Rate 12%

Q: On February 1, 2021, JANE Company factored receivables with a carrying amount of ₱300,000 to JACK…

A: The amount of charges or fees imposed for factoring of accounts receivables are termed as  loss on…

Q: On May 1, 2020, Janine Company secured a loan from NorthSouth Bank, P1,250,000 with 1% monthly…

A: Here in this question, we are required to calculate the interest amount and final payment amount.…

Q: On December 31, 2021, The Essence Finance Company had P5,000,000 note receivable from Galena…

A: When there are certain indications that the recoverable amount from the asset has been declined…

Q: On June 30, 2021, BTS Company factored P2,500,000 of accounts receivable for P2,250,000. The…

A: Loss on factored = (Accounts receivable - allowance for uncollectible accounts) - Amount received =…

Q: A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated…

A: Interest income is the amount which is received for lending money and is calculated on the face…

Q: henyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021 with a…

A: Jhenyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021, with a…

Q: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…

A: Bank charges = accounts receivable  x 8.46% = 2500000 x 8.46% = P211,500

Q: Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A -…

A: What is meant by Factoring? Factor means a source of funding that provides the company value of…

Q: Show the solution in good accounting form. On February 1, 2021, MARIGOLD Company factored…

A: The questions are multiple choice questions Required  Choose the Correct Option.

Q: What should be the balance of the Discount on Notes Payable account on the books of ABC Company at…

A: Note payable- A promissory note or written agreement is referred to as a note payable. The…

Q: On December 31, 2021, Chang Company sold a machihe in the ordinary course of business to Door…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: >Long Term assets are recorded in the books of account at their acquisition cost. >If these…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Solution:- Introduction:- The following information given in the problem as follows:- factored…

Q: On February 1, 2020, Henson Company factored receivables with a carrrrying amount of $700,000 to…

A: Determine the amount of loss on sale to be reported in the income statement.

Q: On December 31, 2019, the bookkeeper of Glare Company provided the following information. Accounts…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of…

A: Notes receivable is used to track the money to be received from the borrower

Q: Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas…

A: Compute the cash received.

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Pina Corp. factors $ 428,000 of accounts receivable with Grouper Finance Corporation on a without…

A: a.   Date  Account title and explanation Debit Credit July 1 ,2020 Cash $399,324…

Q: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…

A: Answer: correct answer is option C C. P 1,588,500; P 319,500

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Loss on factor = Accounts receivable x finance charge

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: Note receivable is a form of current asset for the business, on which regular interest payment will…

Q: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000, while the company’s…

A: Given information is: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000,…

Q: on March 1, 2020. The entity borrowed P3,500,000 on February 1, 2020 which had a five-year term and…

A: Liabilities in the Balance Sheet is classified into two categories: Current  Non current  Those…

Q: On September 30, 2019, Lakatan Inc. borrowed P1,000,000 on a 9% note payable. The entity paid the…

A: solution given Date of issue September 30 2019 Amount of note 1000000 Rate of…

Q: December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: On December 31, 2021, the Trust Finance Company had a P5,000,000 note receivable from Leila Company.…

A: Given, Notes receivable = P5,000,000 Interest rate = 10% Accrued interest = P500,000 Reduction of…

Q: On February 1, 2019, Henson Company factored receivables with a carrying amount of $300,000 to Agee…

A: When a firm factors its receivable to another firm, the former firm transfers right to collect…

Q: On October 1, 2021, Smash Company discounted its own note of P500,000 at 10% for 1 year. In its…

A: When a business makes discounting of its own note, then Notes payable will become a liability for…

Q: The Receivables account of Jennie Co. shows an amortized cost of $1,950,000 on December 31, 2019.…

A: Receivables:- These are the current assets for the company and receive within 1 year, it includes…

Q: n February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: 1) Computing the amount of cash initially to be received as follows:   Total Charges = (3% + 5%)…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Receivables is also known as accounts receivable which refers to the amount of debt owed to a firm…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Factoring is the technique where the accounts or note receivables has been sold by company to any…

Q: On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of ₱300,000 to…

A: Given Information: Receivables with a carrying amount = ₱300,000 Finance charges = 3% Retention for…

Q: In December 2020, Joe's Company, engaged into a factoring armangement with Gaba's Bank (factor),…

A: The journal entries are the first step in the accounting process because a transaction is recorded…

Q: Sakuragi Corporation engaged in the following transactions with regards to financing of receivable…

A: Accounts Receivables :-  It is the amount due from our customers from…

Q: Swifty Company had the following select transactions. Apr. 1, 2020   Accepted Goodwin Company’s…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: What is the total receivable related to the loan to ABC on Dec. 31, 2021?

A: Calculation of carrying amount of loan  Loan Amount 5,000,000 Direct origination costs…

Q: On February 1, 2020, Norton Company factored receivables with a carrying amount of $300,000 to Koch…

A: Recourse factoring is the most common and means that your company must buy back any invoices that…

Q: On December 31, 2021, Chang Company sold a machine in the ordinary course of business to Door…

A: Answer to Question: The carrying amount of the note receivable on December 31, 2022 is d)57,50,000…