On October 1. 2020, Shamrock, Inc. assigns $1,160.700 aof its accounts recelvable 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 9N Prepare the October 1 journal entries for both Shamrock and Bridgeport. fno entryis required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automutically 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 Sheffield Incorporated factored $134.100 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments Prepare the journal entry for Sheffield to record the sale, assuming that the recourse liability has a fair value of $6,970. (f no entry is required, select "No Entry" for the acount titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manualy) Account Titles and Explanation Debit Credit
On October 1. 2020, Shamrock, Inc. assigns $1,160.700 aof its accounts recelvable 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 9N Prepare the October 1 journal entries for both Shamrock and Bridgeport. fno entryis required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automutically 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 Sheffield Incorporated factored $134.100 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments Prepare the journal entry for Sheffield to record the sale, assuming that the recourse liability has a fair value of $6,970. (f no entry is required, select "No Entry" for the acount titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manualy) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:On October 1. 2020, Shamrock, Inc. assigns $1,160.700 aof its accounts recelvable 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 9N
Prepare the October 1 journal entries for both Shamrock and Bridgeport. fno entryis required, select "No Entry for the account titles
and enter O for the amounts. Credit account titles are automutically 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
Sheffield Incorporated factored $134.100 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram
assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for
possible adjustments
Prepare the journal entry for Sheffield to record the sale, assuming that the recourse liability has a fair value of $6,970. (f no entry is
required, select "No Entry" for the acount titles and enter O for the amounts. Credit account titles are automatically indented when the
amount is entered. Do not indent manualy)
Account Titles and Explanation
Debit
Credit
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