Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is S 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer
Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is S 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Alpesh bhaliya
Transcribed Image Text:Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts
receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is $
92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold
an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale
of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct
answer on disposal of receivables Senter a dollar amount 150800 Correct answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education