Need Correct Answer Question: 35Moon Hardware is planning to factor some of its receivables. The cash received willbe used to pay for inventory purchases. The factor has indicated that it will require"recourse" on the sold receivables. Explain to the controller of Moon Hardwarewhat "recourse" is and how the recourse will be reflected in Moon's financialstatements after the sale of the receivables.Question: 36StorageTek Corporation gathered the following information from its accountingrecords for the year ended December, 31, 2016, prior to adjustment: Net credit salesfor the year = $1,150,000, Accounts Receivable (Dec 31, 2016) = $93,000, Allowancefor Uncollectible Accounts, prior to adjustment (Dec 31, 2016) = $6,000 debitbalance. Storage Tek Corporation uses the allowance method of accounting for baddebts and estimates bad debts at 2.5% of net credit sales.Required:A) Prepare the adjusting entry on December 31, 2016.B) Determine the balance in the Allowance for Uncollectible Accounts account afterthe adjusting entry is recorded.C) Show how the receivables would be reported on the December 31, 2016, BalanceSheet for StorageTek Corporation.

Question: 35Definition of Factoring:Factoring receivables means an organization sells it's…

Answered: Question: 35 Moon Hardware is planning…

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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As a company accounts payable manager, which of the following credit terms are most likely to entice you to take the cash discount? A. 2/10 net 90 B. 1/10 net 45 C. 2/10 net 60 D. 1/10 net 30
Question 4 a) You have collected the following information for Fishy Berhad. Item Beginning Ending Inventory RM20,700 RM43,00 Account rceivable RM9,900 RM11,500 Account payable RM16,500 RM22,700 Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate: i) Operating cycle ii) Cash cycle
33 - What is the record to be made when the company pays a debt that arises from the purchase of goods on credit, by paying a check from a customer by endorsement?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT COMMERCIAL GOODS XX SELLERS XXB) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT SELLERS XX CHECKS RECEIVED XXC) THE CODE AND NAME OF THE ACCOUNT WILL BE DEBT COMMERCIAL GOODS XX CHECKS RECEIVED XXD) CODE AND NAME OF THE ACCOUNT WILL BE DEBT SELLERS XX CHECK GIVEN AND PAYMENT ORDERS. XXE) THE CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT CHECK GIVEN
11-What is the main purpose of factoring in accounts receivables? a. To create an additional guarantee of collection b. To meet immediate cash needs of the business c. To establish a legal proof for future use d. To invest accounts receivable in another business
some ca are Cutting Edge Co. is engaged in a small export business. The company maintains limited records. Most of the company's transactions are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following are abstracted from the company's records: Accounts receivable, increase Notes receivable, decrease Accounts payable, decrease CHAPTER 11-PROBLEM 9: P1,480,000 800,000 600,000 AUDITING PRACTICE (2022 Ed.)/CTEspenilla 377
20. Record the entry for write-off Choose * Sales returns and allowances * Bad debt expense * Accounts Payable * Allowance for Uncollectible Account * Accumulate depreciation * Accounts Receivable * Cash
Multiple choice: 1. The measure of how quickly an item can be converted into cash is referred to as A. Leverage B. Solvency C. Liquidity D. Profitablity 2. A customer bought goods from your business, on credit. The customer orally promised to pay the sale price next week. Which of the following accounts is increased and therefore debited? A. Cash B. Accounts Receivable C. Notes Receivable D. Sales
QUESTION 4 (a) You have collected the following information for Fishy Berhad. (b) (i) Item Inventory Account receivable Account payable Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate; (ii) Operating cycle Beginning RM20,700 RM9,900 RM16,500 Cash cycle Ending RM43,300 RM11,500 RM22,700 Your company wants to purchase a photostat machine which costs RM15,000. It will be obsolete in 5 years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease the payment will be RM2,500 per year, payable at the end of each of the next five years. If you purchase the machine it will depreciate at a straight-line basis. The tax rate is 34 percent. Prepare a table and calculate to justify whether you should lease or buy.
4. Which of the following is not a quick asset? c. Accounts Receivable d. Inventory а. Cash b. Cash Equivalents 5. It provides a rough approximation of the average time that it takes to collect receivables. c. Accounts Receivable turnover Inventory turnover b. Average age of receivables а. d. none of the above
Which one of the following statements related to the control of cash disbursement is true? Payment for purchase return should be made from purchase register None of these Serial number is not important in case of issued cheques All payments should be made by cheque Which one the following statements is true about periodic inventory system? It is not appropriate for the small businesses | 直。
Question 5 If company sells its accounts receivables to a factor (such as a finance company), which of the following is not true: O a. the selling company credits accounts receivable for the face value of the A/R sold. O b. the selling company is no longer responsible for collecting cash from the customers. O c. the selling company records a contra revenue for the fee paid to the factor. O d. the selling company pays a service charge (usually a percent of the A/R sold) to the factor. Moving to another question will save this response.
Q1-1 What risks are present if you take too long to col- lect our accounts receivable? Q1-2. What are some analyses you could perform that would provide insight into how efficiently your company is collecting cash from customers? Are there any KPIS that would be appropriate here? Q1-3. In your opinion, what would be an appropriate benchmark for the average number of days sales outstanding (i.e., Accounts receivable/Sales x 365)? Would management want this number higher or lower?

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