Answer:
The Journal entry is as follows:
Cash A/c Dr. $2,27,500
Loss on sale of Receivables A/c Dr. $20,500
Due from Commercial Factor A/c Dr. $10,000
To Recourse liability $8,000
To Accounts Receivable $2,50,000
(To record the sale)
Working notes:
Cash received
:
= $250000 - Finance Charge - Amount retained (Due from factor)
= $250000 - 5% of 250000 - 4% of 250000 = 250000 - 12500 - 10000
= $2,27,000
Loss on sale of receivables
:
= ($250000 × 5%) + Recourse obligation (as the factoring is with recourse)
= $12500 + 8000
= $20,800
Answer:
$50,000
Explanation:
Calculation to determine the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables
Using this formula
Loss on sale of receivables=[(Recourse Accounts receivable*Finance fee charges)+Estimated recourse liability]
Let plug in the formula
Loss on sale of receivables=(3%*$800,000)+$26,000
Loss on sale of receivables=$24,000+$26,000
Loss on sale of receivables=$50,000
Therefore the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables will be $50,000
Answer:
<em>A. autoworker who is temporarily laid off from an automobile company because of a decline in sales.
</em>
Explanation:
Cyclical unemployment is <em>unemployment that occurs when full employment can not be met by the aggregate demand for goods and services in an economy.</em>
This takes place during times of decreased economic growth or times of economic slowdown.
Cyclical unemployment is directly linked to the degree of macroeconomic behavior, which is the combined or collective activity of all economically involved individuals and entities.
Instead of linear, this overall trend is cyclical-economic activity tends to increase and fall rather than always rising or falling.
Answer:
a. reduce errors and catch any problems earlier
Explanation:
Daily inventory cycle counts allow companies to immediately identify variances in inventory and their causes. The organization can then put measures to address the problem. Detecting problems early and employing corrective measures prevent a business from incurring heavy losses as opposed to waiting until the end of a period for a stock take.
Organizations are opting for daily stock stocks for more accurate reporting, customer-friendly stock management, and early detection of inventory problems.
<span>This is a fairly simple concept. If the government were to tighten up on drug dealers and raise the cost of dealing illegal drugs, the job of drug dealers to distribute their products would be harder. The cost to buy drugs for drug addicts would be more expensive. So, the dollar expenditures for drug addicts would increase as they feed their addiction.</span>
