Q1: Make all the JOURNAL entries for Atlas Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company. Accounts receivable in the amount of OMR 450,000 were assigned to the Apple Finance Company by Atlas, Inc., as security for a loan of OMR 400,000. The finance company charged a 5% commission on the face amount of the loan, and the note bears interest at 12% per year. During the fifth month (5), Atlas Inc collected OMR 400000 on assigned accounts. This amount was remitted (paid) to the finance company along with FIVE month's interest on the note.

Q1: Make all the JOURNAL entries for Atlas Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company. Accounts receivable in the amount of OMR 450,000 were assigned to the Apple Finance Company by Atlas, Inc., as security for a loan of OMR 400,000. The finance company charged a 5% commission on the face amount of the loan, and the note bears interest at 12% per year. During the fifth month (5), Atlas Inc collected OMR 400000 on assigned accounts. This amount was remitted (paid) to the finance company along with FIVE month's interest on the note.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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