Pina Corp. factors $ 428,000 of accounts receivable with Grouper Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Grouper Finance, which will receive the collections. Grouper Finance assesses a finance charge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Your answer has been saved. See score details after the due date. Prepare the journal entry on July 1, 2020, for Pina Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1, Cash 2020 399324 Due from Factor 21400 Loss on Sale of Receivables 7276 Accounts Receivable 428000
Pina Corp. factors $ 428,000 of accounts receivable with Grouper Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Grouper Finance, which will receive the collections. Grouper Finance assesses a finance charge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Your answer has been saved. See score details after the due date. Prepare the journal entry on July 1, 2020, for Pina Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1, Cash 2020 399324 Due from Factor 21400 Loss on Sale of Receivables 7276 Accounts Receivable 428000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...
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