Current Attempt in ProgressPina Corp. factors $ 428,000 of accounts receivable with Grouper Finance Corporation on a without recourse basis on July 1, 2020.The receivables records are transferred to Grouper Finance, which will receive the collections. Grouper Finance assesses a financecharge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover salesdiscounts, returns, and allowances. The transaction is to be recorded as a sale.(a)Your answer has been saved. See score details after the due date.Prepare the journal entry on July 1, 2020, for Pina Corp. to record the sale of receivables without recourse. (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 isentered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJuly 1,2020Cash399324Due from Factor21400Loss on Sale of Receivables7276Accounts Receivable428000Attempts: 1 of 1 used Attempts: 1 of 1 us(b)Prepare the journal entry on July 1, 2020, for Grouper Finance Corporation to record the purchase of receivables withoutrecourse. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles areautomatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJuly 1,2020Save for LaterAttempts: 0 of 1 usedSubmit Answera

a. Date Account title and explanation Debit Credit July 1 ,2020 Cash $399,324…

Answered: Pina Corp. factors $ 428,000 of…

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 December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. What is the equity of the assignor in assigned accounts on December 31, 2020?
Manji
Prepare journal entry required on january 15,2021 for Wilkinson SA and Huskie Financing
Alaska Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2021, the company factored $2,000,000 of its accounts receivable to GMA Company. Purchase price was 85% of the receivables factored. GMA Company withheld 5% of the purchase price as protection against sales returns and allowances. Sales returns recorded by Alaska Company on the factored accounts receivable totaled P30,000; the balance of the factor's holdback was settled by the finance company on August 31, 2021. QUESTION:a.) What was the net cash received by Alaska Company from these factored accounts? b.) Give the entries in the books Alaska Company to record the foregoing in the months of July and August 2021.
7. Debbie Company reported collections from customers of P6,000,000 for the year ended December 31, 2020. Additional information follows: 12/31/2019 12/31/2020 Accounts receivable P1,000,000 P3,000,000 Allowance for doubtful accounts ( 100,000) (150,000) Debbie wrote off uncollectible accounts totaling P500,000 during 2020. Under accrual basis, Debbie would report 2020 sales of Group of answer choices P4,500,000 P8,000,000 P8,550,000 P8,500,000
Please help me to solve this problem
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
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 April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with face amount of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale with recognition of contingent liability. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note receivable in full plus 12% annual interest on the total amount due. What is the total amount collected from the customer on December 31, 2020?
Vikarmbhai
Waterway Corporation factors $260,800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Waterway to record the sale of receivables, assuming the recourse obligation has a fair value of $5,000. (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. List all debit entries before credit entries.)
On December 1, 2020, ABC Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000, 12% note from certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the assigned accounts. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P100,000 on the assigned accounts and wrote off assigned accounts of P300,00O. Compute for the amount of cash received from the assignment of accounts receivable on December 1, 2020. * Your answer re to search

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