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- A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.36. Otter Company has a receivable amounting to P1,200,000; Otter had previously established an Allowance for bad debts of P50,000 in connection with these receivables. Otter Company sold these receivables with recourse for P1,060,000. Otter received P1,000,000 cash immediately from the factor. The remaining P60,000 will be received once the factor verifies that none of the receivables is in dispute. Control was surrendered by Otter. The fair value of the recourse obligation is P26,000. The loss on factoring to be recognized by Otter Company is?37. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000 Allowance for doubtful accounts, 1/1/22 28,600 Cash sales 300,000 Sales on account, terms: 2/10, 1/15, n/30 2,560,000 Cash received from customers during the year 2,400,000 Accounts written off during the year 17,600 Cash refunds given…37.EXO Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After holding the note for two months, EXO discounted the note without recourse at East Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting.What was the loss recognized by EXO Company on the sale of notes receivable?
- Otter company has a receivable amounting to P1,200,000 otter had previously established an allowance for bad debts of 50,000 in connection with these receivables.otter company sold these receivables with recourse for P1,060,000. Otter received P1,000,000 cash immediately from the factor. the remaining P60,000 will be received once the factor verifies that none of the receivables is in dispute. control was surrendered by Otter. the fair value of the recourse obligation is P26,000The loss on factoring to be recognized by Otter Company is?39. Haru Company sold accounts receivable without recourse for P10, 600,000. Mild company received P10, 000,000 cash immediately from the factor. The remaining P600, 000 will be received once the factor verifies that none of the accounts receivable is in dispute. The accounts receivable had a face amount of P12, 000,000. Mild company had previously established an allowance for bad debts of P500, 000 in connection with these accounts. How much is the loss on factoring?On May 25, Al Mathir Company made a credit sale of OMR 320,000 to Wasan Company and received a note for 100 days with 9% interest from him in settlement of account receivables. Al Mathir Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25th.Al Mathir Company received Notification from Wasan that he was unable to honour his note on the due date and it is expected that Wasan will pay at a later date but on 1stOctoberWasan has paid full amount on note. On May 25 another note for 3 months with 17.5% interest has been received for OMR 122,000 from Al Zubair Company has been honoured on the due date. Prepare Necessary Journal entries for the following Transactions
- 25.On May 20, 2021, Gordon Company discounted with recourse a P75,000, 90-day, 8% note that was received from a customer's overdue account. The note is dated April 6, 2021. The bank's discount rate is 10%. On maturity date, the maker dishonored the note and the bank charged Gordon including a protest fee of P1,000.What is the amount charged to Accounts Receivable upon dishonor of the note?On May 25, Al Mujaaz Company made a credit sale of OMR 220,000 to Al Zahir Company and received a note for four months with 8% interest from him in settlement of account receivables. Al Mujaaz Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25. Al Mujaaz Company received Notification from Al Zahir that he was unable to honour his note on the due date and it is expected that AlZahir will pay at a later date but On 1st OctoberAl Zahir has paid full amount on note, On May 25, Another note for 60 days 11.5% interest has been received for OMR 112,000 from Al.Zubair Company has been honoured on the due date. Prepare Necessary Journal entries for the above TransactionsSeerden Servicing monitors its accounts receivable carefully. A review determined that a customer, John Daley, was unable to pay his $200,000 past-due account. Seerden accepted a 90-day promissory note dated April 15, 2023, bearing interest of 5% in exchange for Daley's account. Another customer, ABC Drilling, signed a 4.75%, six-month note dated May 1 in place of its $120,000 past-due accounts receivable. On May 31, Seerden's year-end, accrued interest was recorded on the notes receivable. John Daley honoured his note on the maturity date, ABC Drilling dishonoured its note on the maturity date. On November 15, Seerden Servicing wrote off ABC Drilling's account as it was determined to be uncollectible. Required: Prepare Seerden Servicing's entries for each of the following dates: (Use 365 days in a year. Do not round Intermediate calculations. Round your answers to 2 decimal places.) a. April 15, 2023 b. May 1, 2023 c. May 31, 2023 d. Maturity date of John Daley's note e. Maturity date…