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andhill Woodcrafters sells $648,000 of receivables with a fair value of $661,300 to Sand eets the criteria for a sale. Sandhill Woodcrafters receives full fair value for the receival timating that the fair value of this service liability component is $27,000.

andhill Woodcrafters sells $648,000 of receivables with a fair value of $661,300 to Sand eets the criteria for a sale. Sandhill Woodcrafters receives full fair value for the receival timating that the fair value of this service liability component is $27,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Sandhill Woodcrafters sells $648,000 of receivables with a fair value of $661,300 to Sandhill Trust in a securitization transaction that meets the criteria for a sale. Sandhill Woodcrafters receives full fair value for the receivables and agrees to continue to service them, estimating that the fair value of this service liability component is $27,000. Prepare the journal entry for Sandhill Woodcrafters to record the sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Sandhill Woodcrafters sells $648,000 of receivables with a fair value of $661,300 to Sandhill Trust in a securitization transaction that meets the criteria for a sale. Sandhill Woodcrafters receives full fair value for the receivables and agrees to continue to service them, estimating that the fair value of this service liability component is $27,000. Prepare the journal entry for Sandhill Woodcrafters to record the sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
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