Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from the 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 A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer. To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the effect on net income?

The following information pertanis to job

SUBJECT FINANCIAL ACCOUNTING

Answer 2

Question

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Answer 6

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

Answer 7

Chapter 8, Problem 8.9E

(a)

To determine

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from the 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

A company can sell its accounts receivables to a factor before its maturity period. Since, the factor makes earlier payment and bears the risk of receivables, factor has the right to collect service charge from the seller of accounts receivables. After the maturity, factor collects the payment directly from the respective customer.

To prepare: The journal entry in the books of K appliances, to record the sale of the accounts receivables.

Answer 8

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Answer 9

(b)

To determine

Credit Card Sales

Credit card is used by customer to buy products on credit. If the business allows the customers to buy the products through credit cards, then the sales are called as credit card sales.

To prepare: The journal entry in the books of Company F, to record the sales revenue of the merchandise.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Concept explainers

Want to see the full answer?

Chapter 8 Solutions