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?
1 answer:
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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Answer:
Following are the answer to this question:
In question first, the answer is "Option d".
In question second, the answer is "Option e".
In question third, the answer is "Option e".
In question fourth, the answer is "Option e ".
In question fifth, the answer is "Option b".
Explanation:
Given values:
Solution:
= $400000000+$340000000+$4000000
= $744000000
= $744000000 + $50000000+$6000000+$850000000
= $1,650,000,000
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