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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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330 ,,,,,,,,,,,,,,,,,,,,,,,,,,
5 0
2 years ago
on july 1, the knit shop paid $9,000 to townsend realty for 6 months’ rent beginning july 1. prepaid rent was debited for the fu
lubasha [3.4K]

Answer:

debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.

Explanation:

6 0
2 years ago
An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.
crimeas [40]

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

4 0
2 years ago
Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?
Gala2k [10]
The definition of money supply which include only items which are directly and immediately usable as medium of exchange is M1. Money supply refers to the entire stock of currency and other liquid assets that are circulating in a particular economy at a particular period of time.  
M1 include cash and checking deposits which are very liquid in nature and are suitable as medium of exchange. 
7 0
3 years ago
Manufacturer A has a profit margin of 2.0%, an asset turnover of 1.7 and an equity multiplier of 4.9. Manufacturer B has a profi
maksim [4K]

Answer:

1.54

Explanation:

As we know that

The DuPont Analysis is

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So we considered this formula for Manufacturer A and Manufactured B

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2.0% × 1.7 × 4.9 = 2.3% × Asset turnover × 4.7

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6 0
3 years ago
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