Presented below is information for Ayayai Company. 1. Beginning-of-the-year Accounts Receivable balance was $23,100. 2. Net sales (all on account) for the year were $104,700. Ayayai does not offer cash discounts. 3. Collections on
Presented below is information for Ayayai Company. 1. Beginning-of-the-year Accounts Receivable balance was $23,100. 2. Net sales (all on account) for the year were $104,700. Ayayai does not offer cash discounts. 3. Collections on
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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Presented below is information for Ayayai Company.
1. | Beginning-of-the-year |
|
2. | Net sales (all on account) for the year were $104,700. Ayayai does not offer cash discounts. | |
3. | Collections on accounts receivable during the year were $85,400. |
Ayayai is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,075.
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