On December 1, 2021, Boxer Company assigned P 400,000 of accounts receivable to Karate Company as asecurity for a loan of P 335,000. Boxer Company charged a 2% commission on the amount of the loan; theinterest rate on the note was 10%. During December, Boxer collectedP 110,000 on assigned accounts afterdeducting P 380 discounts. Boxer accepted returns worth P 1,350 and wrote off assigned accounts totaling P2,980.QUESTION:What is the carrying value of the accounts receivable assigned as of December 31, 2022?O P 285,290O NONEO P 289,620O P 290,000

The amount owed to a company for goods or services delivered or used but not yet paid for by…

Answered: On December 1, 2021, Boxer Company…

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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On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for a 2-month, 12% loan equal to 75% of the assigned receivables. ASG Co. received the loan proceeds after a 1.5% deduction for service fee based on the assigned notes. During March, P500,000 were collected from the receivables. Sales returns and discounts amounted to P150,000. How much net cash is received from the assignment transaction on March 1, 2016?
VKS Corp. assigned P500,000 of accounts receivable to RK Finance Co. as security for a loan of P420,000. IntAcc1 charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, VKS collected P110,000 on assigned accounts after deducting P380 of discounts. VKS accepted returns worth P1,350 and wrote off assigned accounts totaling P3,700. The amount of cash VKS received from RK at the time of the transfer was ___________
Cheyenne Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Loaned $13,800 cash to Manny Lopez on a 12 month, 10% note. Nov. 1 Sold goods to Ralph Kremer, Inc., receiving a $27,000, 90-day, 8% note. Dec. 11 Received a $21,000, 180 day, 12% note in exchange for Joe Fernetti's outstanding accounts receivable. 16 31 Accrued interest revenue on all notes receivable.
Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…
On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Shamrock and Bridgeport. (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.) Date Account Titles and Explanation Debit Credit Shamrock, Inc. Oct. 1 Bridgeport National Bank Oct. 1
SK Inc, factors $400,000 of accounts receivable with Mars Finance Company on a without recourse basis on July 1,2020. The receivables records are transferred to Mars Finance, which will receive the collections. Mars Finance assesses a finance charge of 1 ½% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Instructions: Prepare the journal entry on July1,2020, for SK Inc. to record the sale of receivables without recourse. Prepare the journal entry on July1,2020, for Mars Finance Company. to record the purchase of receivables without recourse
On December 1, 2017, Marin, Inc. assigns $ 3,380,000 of its accounts receivable to Sweet Acacia Bank as collateral for a $ 2,028,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 8%. Prepare the December 1 journal entries for both Marin and Sweet Acacia. (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.) Date Account Titles and Explanation Debit Credit Marin, Inc. December 1 Sweet Acacia Bank December 1
Ayayai Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $ 18,000 cash to Manny Lopez on a 12-month, 8% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $ 36,000, 90-day, 6% note. 16 Received a $ 21,600, 180 day, 12% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. (a) Journalize the transactions for Ayayai Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 8%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 10%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Tab 1) Record the accrued interest earned. Tab 2) Record the discounting of note receivable. Date General Journal Debit Credit February 28, 2021 ____________________________ ___________ ____________ _____________________________ ____________ ____________…
On 31 December 2017, BC assigned specific accounts receivable amounting to P4,000,000 as collateral on P3,000,000, 12% note from certain bank. The company will continue to collect the assigned receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On 31 December 2017, the entity remitted the collections to the bank in payment for the interest accrued on 31 December 2017 and the note payable. The entity accepted the sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. What is the loss on factoring?
Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2018. The note, along withinterest at 10%, is due on July 1, 2018. On February 28, 2018, Selkirk discounted the note at Unionville Bank. Thebank’s discount rate is 12%.Required:Prepare the journal entries required on February 28, 2018, to accrue interest and to record the discounting (roundall calculations to the nearest dollar) for Selkirk. Assume that the discounting is accounted for as a sale.
On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.

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