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

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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.

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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

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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

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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

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Answer 11

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Answer 12

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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.