Is there possibly answer questions
Answer:
is whether the transferor surrenders control over the receivables
Explanation:
In Sales of Receivables and Collateralized Borrowing,.companies do not want to wait for payments to arrive as they simply quickens cash collection with help of bank or financing company and also factoring and collateralized borrowings are various means to speed up cash collections. In Collateralized borrowing, receivables are simply collateral. Company gets cash from bank and is saddle with the responsibility for repaying loan.
Issues regarding collateralized borrowing are the sales of receivables had the purchaser is called a factor, borrowing using receivables as collateral and accounts receivable is not wipe off from seller's books.
Answer:
DR Bad Debts Expense $11,750
CR Accounts Receivable $11,750
<em>(To record accounts receivable written off)</em>
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Explanation;
Direct method of writing off involves removing the bad debt directly from the Accounts Receivable account instead of using the Allowance for Doubtful debt account.
Answer:
after-tax rate of return from this investment = 6.48 %
Explanation:
given data
invested = $250,000
interest 1 = 7%
interest 2 = 9%
marginal tax rate = 24%
to find out
after-tax rate of return from this investment
solution
we know that after-tax rate of return from this investment will be here
after-tax rate of return from this investment = [ ( 1 - marginal tax rate ) × ( investment × interest 2) ] ÷ investment ...........................1
put here value we get
after-tax rate of return from this investment = [ ( 1 - 0.28 ) × ( $25000×0.09)] ÷$25000
so
after-tax rate of return from this investment = 0.0648
so
after-tax rate of return from this investment = 6.48 %