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%.

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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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Alanood Company wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years the company's gross profit rate averaged 36%. The following information for the years first quarter is available from its records: January 1 beginning inventory $150,130 Purchases $472,600 Purchase returns $6,525 Transportation in $3,450 Sales $595,575 Sales returns $4,725 Use the gross profit method to prepare an estimate of the company's March 31 inventory.

Please solve this general accounting question

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

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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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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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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 - 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...

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.