The journal entry to record factoring arrangement without recourse. Given information: Accounts receivable sold to factor is $600,000. Factoring fee is 6% of accounts receivables. Hold back amount is 2%.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General accounting

Hii expert please given correct answer general Accounting question

On 1st May, 2024 you are engaged to audit the financial statement of Giant Pharmacy for the period ending 30th December 2023. The Pharmacy is located at Mgeni Nani at the outskirts of Mtoni Kijichi in Dar es Salaam City. Materiality is judged to be TZS. 200,000/=. During the audit you found that all tests produced clean results. As a matter of procedures you drafted an audit report with an unmodified opinion to be signed by the engagement partner. The audit partner reviewed your file in October, 2024 and concluded that your audit complied with all requirements of the international standards on auditing and that; sufficient appropriate audit evidence was in the file to support a clean audit opinion. Subsequently, an audit report with an unmodified opinion was issued on 1st November, 2024. On 18th January 2025, you receive a letter from Dr. Fatma Shemweta, the Executive Director of the pharmacy informing you that their cashier who has just absconded has been arrested in Kigoma with TZS.…

Answer 2

Question

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Answer 6

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Answer 7

Chapter 9, Problem 9.14E

1.

To determine

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Answer 8

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Answer 9

2.

To determine

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

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. 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 - Prob. 9.8Q Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...

The journal entry to record factoring arrangement without recourse. Given information: Accounts receivable sold to factor is $600,000. Factoring fee is 6% of accounts receivables. Hold back amount is 2%.

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

Concept explainers

Videos

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.

Want to see the full answer?

Chapter 9 Solutions

The journal entry to record factoring arrangement without recourse. Given information: Accounts receivable sold to factor is $600,000. Factoring fee is 6% of accounts receivables. Hold back amount is 2%.

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

Concept explainers

Videos

To prepare: The journal entry to record factoring arrangement without recourse. Given information: Accounts receivable sold to factor is $600,000. Factoring fee is 6% of accounts receivables. Hold back amount is 2%.

The Journal entry to record factoring arrangement with recourse. Given information: Accounts receivable sold to factor is $600,000. Factoring fee is 6% of accounts receivables. Hold back amount is 2%. Recourse obligation is $10,000.

Want to see the full answer?

Chapter 9 Solutions

To prepare: The journal entry to record factoring arrangement without recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

The Journal entry to record factoring arrangement with recourse.

Given information:

Accounts receivable sold to factor is $600,000.

Factoring fee is 6% of accounts receivables.

Hold back amount is 2%.

Recourse obligation is $10,000.