On November 30, Petrov Company has $128,700 of accounts receivable and uses the perpetual inventory system. December 4 Sold $7,245 of merchandise (that had cost $5,000) to customers on credit, terms n/30. December 9 Sold $20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee. December 17 Received $5,859 cash from customers in payment on their accounts. December 27 Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan. (1) Prepare journal entries to record the above transactions. (2) Which transaction would most likely require a note to the financial statements? Required 1 Required 2 Prepare journal entries to record the above transactions.

On November 30, Petrov Company has $128,700 of accounts receivable and uses the perpetual inventory system. December 4 Sold $7,245 of merchandise (that had cost $5,000) to customers on credit, terms n/30. December 9 Sold $20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee. December 17 Received $5,859 cash from customers in payment on their accounts. December 27 Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan. (1) Prepare journal entries to record the above transactions. (2) Which transaction would most likely require a note to the financial statements? Required 1 Required 2 Prepare journal entries to record the above transactions.

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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