P6.10 (LO 5) (Assigned Accounts Receivable-Journal Entries) Salen Company finances some of its current operations by assigning accountsreceivable to a finance company. On July 1, 2025, it assigned, under guarantee (with recourse), specific accounts amounting to $150,000. The financecompany advanced to Salen 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less afinance charge of ½% of the total accounts assigned.On July 31, Salen Company received a statement that the finance company had collected $80,000 of these accounts and had made an additional chargeof 12% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Salen Company from thefinance company. (Hint: Make entries at this time.) On August 31, 2025, Salen Company received a second statement from the finance company,together with a check for the amount due. The statement indicated that the finance company had collected an additional $50,000 and had made afurther charge of 12% of the balance outstanding as of August 31.InstructionsMake all entries on the books of Salen Company that are involved in the transactions above.

Notes payable are a kind of long-term liability that show the money that a firm owes its financiers,…

P6.10 (LO 5) (Assigned Accounts Receivable Journal Entries) Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2025, it assigned, under guarantee (with recourse), specific accounts amounting to $150,000. The finance company advanced to Salen 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of 2% of the total accounts assigned. On July 31, Salen Company received a statement that the finance company had collected $80,000 of these accounts and had made an additional charge of 2% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Salen Company from the finance company. (Hint: Make entries at this time.) On August 31, 2025, Salen Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $50,000 and had made a further charge of 2% of the balance outstanding as of August 31. Instructions Make all entries on the books of Salen Company that are involved in the transactions above.

P6.10 (LO 5) (Assigned Accounts Receivable Journal Entries) Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2025, it assigned, under guarantee (with recourse), specific accounts amounting to $150,000. The finance company advanced to Salen 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of 2% of the total accounts assigned. On July 31, Salen Company received a statement that the finance company had collected $80,000 of these accounts and had made an additional charge of 2% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Salen Company from the finance company. (Hint: Make entries at this time.) On August 31, 2025, Salen Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $50,000 and had made a further charge of 2% of the balance outstanding as of August 31. Instructions Make all entries on the books of Salen Company that are involved in the transactions above.

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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2. Answer what is required of the problem.
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