Pina Enterprises sold $791,000 of accounts receivable to Blossom Factors, Inc. on a without recours basis under IFRS, as the risks and rewards have been transferred to Blossom. The transaction meets criteria for a sale, and no asset or liability components of the receivables are retained by Pina. Bloss Factors assesses a finance charge of 3% of the amount of accounts receivable and retains an amou equal to 4% of accounts receivable. Prepare journal entries for both Pina and Blossom. Use the acco Due to Customer for Blossom.

Pina Enterprises sold $791,000 of accounts receivable to Blossom Factors, Inc. on a without recours basis under IFRS, as the risks and rewards have been transferred to Blossom. The transaction meets criteria for a sale, and no asset or liability components of the receivables are retained by Pina. Bloss Factors assesses a finance charge of 3% of the amount of accounts receivable and retains an amou equal to 4% of accounts receivable. Prepare journal entries for both Pina and Blossom. Use the acco Due to Customer for Blossom.

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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