Accounts receivable Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Sale of receivables to a factor: Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity. To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Need help with this question solution accounting

Hello tutor answer do fast and step by step calculation with explanation for these accounting question

Give true answer the general accounting question please need answer

Answer 2

Question

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Answer 6

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Answer 7

Chapter 8, Problem 8.7E

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Sale of receivables to a factor:

Receivables can be liquidated by selling the receivables to a factor such as financial institutions or bankers by losing some percentage of receivables as fees (Service charge expense) before its maturity period. Factors will collect cash on receivables directly from the respective customers at its maturity.

To prepare: The journal entry in the books of P Appliances, to record the sale of accounts receivable.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author explains that P Appliances sold its 710,000 accounts receivable to a factor, and incurred 4% service charge.

Concept explainers

Videos

Want to see the full answer?

Chapter 8 Solutions