Saved Help Save A company transferred $74,000 of accounts receivable to a bank. The transfer was made without recourse. The bank remits 90% of the factored amount to the company and retains 10%. When the bank collects the receivables, it will remit to the company the retained amount (which the company estimates has a fair value of $6,400) less a 2% fee (2% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of the company assuming that the sale criteria are met. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No Event 1 1 Cash General Journal Loss on sale of receivables Receivable from factor Accounts receivable Debit Credit

Saved Help Save A company transferred $74,000 of accounts receivable to a bank. The transfer was made without recourse. The bank remits 90% of the factored amount to the company and retains 10%. When the bank collects the receivables, it will remit to the company the retained amount (which the company estimates has a fair value of $6,400) less a 2% fee (2% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of the company assuming that the sale criteria are met. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No Event 1 1 Cash General Journal Loss on sale of receivables Receivable from factor Accounts receivable Debit Credit

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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Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%
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Bank Alfatih earned an annual profit amounting to USD1,500,000 through a Mudharaba Mutlaqah deposit account. The profit sharing ratio between the bank and the depositors of the Mudharaba deposit account is (40:60) respectively. The table below contains data on the deposit types that are available, average balance needed, and the weights that are used. Deposit Types Average balance Weights 1 month 300,000 0.5 3 months and less 400,000 0.8 6 months and less 600,000 1 12 months and less 800,000 1.25 Total 2,100,000 Calculate the total depositors’ share from the annual profit. Calculate the weighted average balance for each type of deposits.
Part 2 Now assume that on December 31, 2023, Sheridan enters into the following transactions related to the company's receivables: 1. 2. Sheridan sells the note receivable to Prairie Bank for $60,000 cash plus accrued interest. Given the creditworthiness of Sheridan's customer, the bank accepts the note without recourse and assesses a finance charge of 3.10%. Prairie Bank will collect the note directly from the customer. Sheridan factors some accounts receivable at the end of the year. Accounts totalling $35,000 are transferred to Skysong, Inc., with recourse. Skysong retains 5% of the balances and assesses a finance charge of 4% on the transfer. Skysong will collect the receivables from Sheridan's customers. The fair value of the recourse obligation is $4,700. Prepare the journal entry to record the transfer of the note receivable to Prairie Bank. (Round answers to O decimal places, e.g. 8,971. Credit account titles are automatically indented when the amount is entered. Do not indent…
GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled the balance on her account by means of an electronic funds transfer. These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? OA. The Debtors Control account will decrease by R7 000. OB. The debtor owed R8 750. OC. The Bank account will be credited with R7 000. OD. The amount received from the debtor was R1 400.
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In a bank reconciliation, to adjust for the bank's deducting $980 for a company check that you wrote and booked for $890 requires A. increasing the book balance by $90 B. reducing the book balance by $90 C. increasing the bank balance by 590 D. reducing the bank balance by $90