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SCORPION-xisa [38]
3 years ago
11

Pina Corporation factors $268,100 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen

Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Pina to record the sale of receivables, assuming the recourse obligation has a fair value of $4,380. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Business
1 answer:
Ratling [72]3 years ago
6 0

Answer and Explanation:

The Journal entries are shown below:-

Cash Dr, $253,014

Due from Factor Dr, $10,724

Loss on sale of Receivables Dr, $8,742

     To Recourse Liability $4,380

        To Accounts Receivable $268,100

(Being sale of receivables is recorded)

Working note:-

Accounts receivable $268,100

Finance Charge at 2% of AR $5,362

Recourse Liability(fair value) $4,380

Loss on sale of receivables $8,742

Retention amount at 4% of AR $10,724

Cash Received from Factor $253,014

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8 0
2 years ago
The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the difference between planned
Mademuasel [1]

Answer:

The correct answer to the following question will be Option C.

Explanation:

  • A Cost variance seems to be the gap and difference between the expected expenditures incurred as well as the projected regular expenditures at just the start of such a time frame.
  • Such variances have been used by administrators to assess and monitor the progress including its supply chains, expenditures as well as other activities.

⇒  Cost variance = Actual cost - Standard cost

Some other available options have no connection with the given case. So choice C seems to be the perfect solution to that.

4 0
3 years ago
Suppose a stock had an initial price of $117 per share, paid a dividend of $3.10 per share during the year, and had an ending sh
bonufazy [111]

Answer:

The correct answer for option (a) is 28.29% and for option (B) is 2.65%.

Explanation:

According to the scenario, the given data are as follows:

Initial price = $117

Ending price = $147

Dividend = $3.10

(a) We can calculate the Total return percentage by using following formula:

Total return percentage = ( Ending Price - Initial Price + Dividend) ÷ Initial Price

By putting the value, we get

Total return percentage = ( $147 - $117 + $3.10) ÷ ( $117)

= 28.29% (approx).

(b). we can calculate the dividend yield by using following formula:

Dividend Yield = Dividend ÷ Initial Price

By putting the value, we get

Dividend Yield = $3.10 ÷ $117

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8 0
3 years ago
The following transactions occurred during a recent year:
Natasha_Volkova [10]

The Company's preliminary Net Income can be determined as $575.

Preliminary net income = Total Revenue - Total Expenses

= $575 ($4,230 - $3,655)

Revenue:

d. Sales Revenue      $680

f. Service Revenue $2,870

i. Service Revenue    $680

Total Revenue      $4,230

Expenses:

a. Wages Expense       $1,700

e. Utilities Expense     $1,360

h. Travel Expense           $115

k. Advertising Expense $480

Total Expenses         $3,655

Thus, the company generated a preliminary net income of $575 for the period.

Learn more about determining net income at brainly.com/question/19850768

6 0
2 years ago
Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A. research a
lidiya [134]

Answer: Research and development

Explanation: Primary functions are those functions which ensures that the essential requirements to operate the business efficiently are met. These require monitoring by the second level managers of the organisation.

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Thus, we can conclude that the right answer is Option A.

6 0
2 years ago
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