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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