Current Attempt in Progress Novak Woodcrafters sells $230,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Novak estimates the fair value of the recourse liability to be $9,670. Prepare the journal entry for Novak to record the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Loss on Sale of Receivables Receivable from Factor Recourse Liability Accounts Receivable eTextbook and Media List of Accounts Save for Later Last saved 1 day ago. Debit Credit 9,670 Attempts: 0 of 3 used Submit Answer

Current Attempt in Progress Novak Woodcrafters sells $230,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Novak estimates the fair value of the recourse liability to be $9,670. Prepare the journal entry for Novak to record the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Loss on Sale of Receivables Receivable from Factor Recourse Liability Accounts Receivable eTextbook and Media List of Accounts Save for Later Last saved 1 day ago. Debit Credit 9,670 Attempts: 0 of 3 used Submit Answer

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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Q9
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