Chapter 5, Problem 5EYCT

Pina Colada Corp. factors $620,000 of accounts receivable with Kingbird, Inc., Inc. on a with recourse basis. Kingbird, Inc. will collect the receivables. The receivable records are transferred to Kingbird, Inc. on August 15, 2023. Kingbird, Inc. assesses a finance charge of 2.0% of the amount of accounts receivable and also reserves an amount equal to 5.05% of accounts receivable to cover probable adjustments. Pina prepares financial statements under ASPE. Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15, 2023, for Pina to record the sale of receivables, assuming the recourse obligation has a fair value of $7,400. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit

What are budgeted sales for March?

When should modified attribution analysis replace direct assignment? (a) Complex responsibility patterns demand nuanced Allocation     (b) Direct assignment works always (c) Attribution adds confusion (d) Standard methods suffice