Consider the following two (2) IINDEPENDENT situations Situation #1 On December 1, Y4; Aylmer Inc factors, WITHOUT recourse, $450,000 of accounts receivable with Mapleton Commercial Factoring. Mapleton Commercial Factoring will asssess a finance charge of 2% of the amount of the accounts receivable. Mapleton also withholds an initial amount equal to 3% of the accounts receivable for any potential returns and allowances. REQUIRED: Prepare the entries for BOTH Aylmer Inc and Mapleton Commercial Factoring on December 1, Y4 Situation #2 On January 1, Y3; Aylmer Inc sold some merchandise to London Inc for $600,000 London has poor credit and signed a two-year, zero-interest bearing note. The market rate is 8% REQUIRED: Prepare ALL the necessary entries for Aylmer Inc for Y3 and Y4 (show all of your work)
Consider the following two (2) IINDEPENDENT situations Situation #1 On December 1, Y4; Aylmer Inc factors, WITHOUT recourse, $450,000 of accounts receivable with Mapleton Commercial Factoring. Mapleton Commercial Factoring will asssess a finance charge of 2% of the amount of the accounts receivable. Mapleton also withholds an initial amount equal to 3% of the accounts receivable for any potential returns and allowances. REQUIRED: Prepare the entries for BOTH Aylmer Inc and Mapleton Commercial Factoring on December 1, Y4 Situation #2 On January 1, Y3; Aylmer Inc sold some merchandise to London Inc for $600,000 London has poor credit and signed a two-year, zero-interest bearing note. The market rate is 8% REQUIRED: Prepare ALL the necessary entries for Aylmer Inc for Y3 and Y4 (show all of your work)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Looking for answers. Please include all the calculations for my reference. Thanks in advance.
Transcribed Image Text:Consider the following two (2) INDEPENDENT situations
Situation #1
On December 1, Y4; Aylmer Inc factors, WITHOUT recourse,
$450,000
of accounts receivable
with Mapleton Commercial Factoring. Mapleton Commercial Factoring will asssess a finance charge of
2%
of the amount of the accounts receivable. Mapleton also withholds an initial amount equal to
3%
of the accounts receivable for any potential returns and allowances.
REQUIRED: Prepare the entries for BOTH Aylmer Inc and Mapleton Commercial Factoring on December 1, Y4
Situation #2
On January 1, Y3; Aylmer Inc sold some merchandise to London Inc for
$600,000
London has poor credit and signed a two-year, zero-interest bearing note. The market rate is
8%
REQUIRED: Prepare ALL the necessary entries for Aylmer Inc for Y3 and Y4 (show all of your work)
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