Beyoncé Corporation factors $390,000 of accounts receivable with Kathleen Battle Financing, Inc. on a without recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2017. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. Instructions: The entry to record this transaction in the books of Beyoncé Corporation will include a debit to "Due from Factor" of how much?
Beyoncé Corporation factors $390,000 of accounts receivable with Kathleen Battle Financing, Inc. on a without recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2017. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. Instructions: The entry to record this transaction in the books of Beyoncé Corporation will include a debit to "Due from Factor" of how much?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Beyoncé Corporation factors $390,000 of accounts
receivable with Kathleen Battle Financing, Inc. on a without
recourse basis. Kathleen Battle Financing will collect the
receivables. The receivables records are transferred to
Kathleen Battle Financing on August 15, 2017. Kathleen Battle
Financing assesses a finance charge of 2% of the amount of
accounts receivable and also reserves an amount equal to
4% of accounts receivable to cover probable adjustments.
Instructions:
The entry to record this transaction in the books of Beyoncé
Corporation will include a debit to "Due from Factor" of how
much?
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