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shtirl [24]
3 years ago
11

Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% f

actoring fee. What entry should Jervis make to record the transaction?

Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

Explanation:

Step 1 of 2

Calculate the amount of factoring fee.

Factoring fee = 5% ×Account Receivable

=5%×$75,000

=$3,750

​

Step 2 of 2. Journey record. Image attached.

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

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qwelly [4]

Answer:

Option A) To record revenues and expenses

Explanation:

The accounting accrual is an accounting method, it means that the company must record the revenues and expenses in the moment that the transactions occur and not when the payment is done.

By this method is always necessary to make adjustment entries to the accounting system if not it's impossible reflect all the transactions occured at this moment.

3 0
3 years ago
U.s. firms that produce sophisticated military hardware are prohibited from exporting that equipment to "unfriendly" governments
Vladimir [108]
The answer is Embargo

Can you give me brainliest? :D
8 0
3 years ago
On January 1, Noonan Company purchases equipment for $100,000. The equipment is expected to have a useful life of 5 years and wi
PtichkaEL [24]

Answer:

$20,000

Explanation:

Since the cost is allocated equally, the depreciation expense on the purchased equipment will be calculated as:

                                                                 =  <u>Cost of equipment- Scrap value</u>

                                                                        Useful life

                                                                 =  <u>$100,000 - $0</u>

                                                                        5 years

                                                                = $20,000

Based on the above, the depreciation expense for the year that must be recognized by Noonan Company is $20,000.

7 0
3 years ago
Andrew Carnegie and John D. Rockefeller:
Damm [24]
D. We’re both immigrants
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Tcecarenko [31]
Please provide context for the first part??? I'm intrigued as to why the employer is listening on his employees through grapevines ahahah.

I assume this relates to the topic of motivation in the workplace, so you should search up types of employee motivation. These include increasing wages, decreasing work hours, and providing more benefits (more days off/free family vacations/free education for their children and such).
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3 years ago
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