Presented below is information for blossom company. 1. beginning of the year accounts receivable balanced was 18500 2. net sales (all on accounts) for the year were 110,700. blossom does not offer cash discounts. 3. collections on accounts receivable during the year were 84500 Blossom is planning to factor some accounts receivable at the year. accounts totaling 13700 will be transferred to credit factors, inc with recourse. credit factors will retain 5% of the balaces for probable adjustments and assesses a finance charge of 4%. the fair value of the reocurse obligation is 1049 Prepare the journal entry to record the sale of the receivables compute blossom's accounts receivable turnover for the year assuming the receivables are sold
Presented below is information for blossom company. 1. beginning of the year accounts receivable balanced was 18500 2. net sales (all on accounts) for the year were 110,700. blossom does not offer cash discounts. 3. collections on accounts receivable during the year were 84500 Blossom is planning to factor some accounts receivable at the year. accounts totaling 13700 will be transferred to credit factors, inc with recourse. credit factors will retain 5% of the balaces for probable adjustments and assesses a finance charge of 4%. the fair value of the reocurse obligation is 1049 Prepare the journal entry to record the sale of the receivables compute blossom's accounts receivable turnover for the year assuming the receivables are sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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am. 101.
Transcribed Image Text:Presented below is information for blossom company. 1. beginning of the year accounts receivable balanced was 18500 2. net sales (all on accounts) for the year were
110,700. blossom does not offer cash discounts. 3. collections on accounts receivable during the year were 84500 Blossom is planning to factor some accounts receivable
at the year. accounts totaling 13700 will be transferred to credit factors, inc with recourse. credit factors will retain 5% of the balaces for probable adjustments and assesses a
finance charge of 4%. the fair value of the reocurse obligation is 1049 Prepare the journal entry to record the sale of the receivables compute blossom's accounts receivable
turnover for the year assuming the receivables are sold
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