Assigning Receivables, Factoring Receivables. Sawyer’s Fence Company borrowed $240,000 from Hannibal Capital by issuing a 3-year (36-month), 6% note payable. Sawyer’s uses $270,000 of its
Required
- a. Determine whether Sawyer’s borrowing from Hannibal would be treated as a borrowing or sale under U. S. GAAP. Prepare any
journal entries needed at the initiation of the arrangement. - b. Prepare the journal entries to record the collection of the receivables and the payment to Hannibal.

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Chapter 9 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
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