The Journal entry to record factoring arrangement. Given information: Accounts receivable sold to factor is $2,450,000. Factoring fee is 7% of accounts receivables. Hold back amount is 4%. Recourse obligation is $75,500.

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Answer 1

Question

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

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Answer 2

Question

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Answer 6

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Answer 7

Chapter 9, Problem 9.18BE

To determine

The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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The Journal entry to record factoring arrangement. Given information: Accounts receivable sold to factor is $2,450,000. Factoring fee is 7% of accounts receivables. Hold back amount is 4%. Recourse obligation is $75,500.

Solution Summary: The author explains the accounting rules for factoring arrangements. Factoring with recourse involves debiting assets, expenses, losses, and crediting liabilities, capital, revenue and gains.

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The Journal entry to record factoring arrangement.

Given information:

Accounts receivable sold to factor is $2,450,000.

Factoring fee is 7% of accounts receivables.

Hold back amount is 4%.

Recourse obligation is $75,500.

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Chapter 9 Solutions