Pina 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 finance charge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, 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 is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1, Cash 2020 399324 Due from Factor 21400 Loss on Sale of Receivables 7276 Accounts Receivable 428000
Pina 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 finance charge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, 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 is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1, Cash 2020 399324 Due from Factor 21400 Loss on Sale of Receivables 7276 Accounts Receivable 428000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Current Attempt in Progress
Pina 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 finance
charge of 1.70% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales
discounts, 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 is
entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1,
2020
Cash
399324
Due from Factor
21400
Loss on Sale of Receivables
7276
Accounts Receivable
428000
Attempts: 1 of 1 used
Transcribed Image Text:Attempts: 1 of 1 us
(b)
Prepare the journal entry on July 1, 2020, for Grouper Finance Corporation to record the purchase of receivables without
recourse. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1,
2020
Save for Later
Attempts: 0 of 1 used
Submit Answer
a
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