2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

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Textbook Question

Chapter 9, Problem 9.13E

Factoring Receivables without Recourse, Factoring Receivables with Recourse.

Mac Antiques, Inc sold $15,780,000 of its accounts receivable to Maximum Cash Capital (MCC). MCC charges a fee equal to 5% of the receivables factored and holds back an additional 2% as security. MCC will return the hold back to Mac when the receivables are collected. This transaction is to be recorded as a sale.

Required

a. Prepare the journal entry required to record the sale of receivables assuming that the receivables are factored without recourse
b. Independent of your answer to part (a), prepare the journal entry required to record the sale of the receivables assuming that the receivables are factored with recourse. The recourse liability is estimated as $175,000

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Chapter 9, Problem 9.12E

Chapter 9, Problem 9.14E

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Chapter 9 Solutions

Intermediate Accounting (2nd Edition)

Ch. 9 - Prob. 9.1Q Ch. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3Q Ch. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...

Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BE Ch. 9 - Prob. 9.2BE Ch. 9 - Prob. 9.3BE Ch. 9 - Prob. 9.4BE Ch. 9 - Prob. 9.5BE Ch. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.14BE Ch. 9 - Prob. 9.15BE Ch. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BE Ch. 9 - Notes Receivable. Welk Associates sold a piece of...Ch. 9 - Prob. 9.20BE Ch. 9 - Prob. 9.21BE Ch. 9 - Prob. 9.22BE Ch. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BE Ch. 9 - Prob. 9.25BE Ch. 9 - Prob. 9.26BE Ch. 9 - Prob. 9.27BE Ch. 9 - Prob. 9.28BE Ch. 9 - Prob. 9.1E Ch. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Write-Offs, Journal Entry....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9E Ch. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11E Ch. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14E Ch. 9 - Prob. 9.15E Ch. 9 - Notes Receivable with Year-End Interest Accrual,...Ch. 9 - Prob. 9.18E Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Prob. 9.2P Ch. 9 - Allowance for Uncollectible Accounts, Aging of...Ch. 9 - Prob. 9.4P Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7P Ch. 9 - Prob. 9.8P Ch. 9 - Aging of Accounts Receivable, Write-Offs,...Ch. 9 - Disclosure. Using the transactions listed in P9-9,...Ch. 9 - Accounts Receivable Disclosure. Using Kellogg...Ch. 9 - Prob. 1JC Ch. 9 - Financial Statement Analysis Case: Revlon The...Ch. 9 - Prob. 1SSC Ch. 9 - Surfing the Standards Case 2: Costs Associated...Ch. 9 - Prob. 1BCC

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Solution Summary: The author explains factoring without recourse, which is the process of recording the transactions of an organization in a chronological order.

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Chapter 9 Solutions