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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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Blaney Clothing Store had a balance in the Accounts Receivable account of $437,500 at the beginning of the year and a balance of
Alexandra [31]

Answer:

Average Collection Period = 57.03

Explanation:

given data

Accounts Receivable beginning =  $437,500

Accounts Receivable ending =   $500,000

Net credit sales = $3,000,000

to find out

average collection period

solution

we get here first average account receivable that is express as

average account receivable = \frac{437,500+500,000}{2}

average account receivable = $468750

and we consider No of Days in a year is = 365

so Average Collection Period will be

Average Collection Period = \frac{468750}{3000000} × 365

Average Collection Period = 57.03

7 0
2 years ago
A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy
sveticcg [70]

Answer:

strategy analysis

Explanation:

Strategy analysis is an effective way to analyse the business and internal environment within which they work and operate. Another important feature of strategy analysis is to form a competitive environment within the organisation to create an environment in order to effectively accomplish goals. It helps to form the strategic decision of the company. So, the element of good strategy is to do strategy analysis.

3 0
3 years ago
One year​ ago, your company purchased a machine used in manufacturing for . You have learned that a new machine is available tha
Kazeer [188]

Answer:

Yes it would be profitable to replace a year old machine.

Explanation:

its always best to buy new things to replace others.

old things usually dont work correctly and could be out of date.

buying something new can reduce that probability of not working correctly

6 0
2 years ago
On March 12, a company provides services on account to an individual Hospital for $9,100, terms 2/10, n/30. An individual does n
shutvik [7]

To record the transactions with the individual hospital company, the following journal entries are made:

<h3>Journal Entries:</h3>

March 12: Debit Accounts Receivable $9,100

Credit Services Revenue $9,100

  • To record the sale of services on terms 2/10, n/30.

March 31: Debit Cash $9,100

Credit Accounts Receivable $9,100

  • To record the receipt of cash in full settlement.

<h3>Transaction Analysis:</h3>

March 12: Accounts Receivable $9,100 Sales Revenue $9,100

Terms 2/10, n/30

March 31: Cash $9,100 Accounts Receivable $9,100

Thus, the journal entries for the customer do not require the recognition of the 2% sales discount since the customer could not pay within the discount window.

Learn more about recording transactions at brainly.com/question/17201601

#SPJ1

3 0
2 years ago
For each of the roles below, write a paragraph or two supporting or opposing a tariff that is being considered to tax imported f
____ [38]

Answer:

1. You are a farmer, growing mangoes in California. Due to a recent drought, your crop has been particularly bad this year. The Chilean mango crop, on the other hand, is particularly good this year.

As a farmer I would support high import tariffs in order to increase the price of imported mangoes. If the world price of mangoes is very high, then I will be able to charge a higher price for my own production.

Since this was a very bad year for domestic mangoes, a very high price would allow me to recover some of the losses and stay in business. Several families are directly and indirectly affected by whether my business continues or not. I have employees and suppliers that would be negatively affected if I have to close my farm.

By increasing import tariffs, the government will earn higher taxes for every mango imported. The government also has the duty to protect local businesses.

2. You are the proprietor of a restaurant that specializes in tropical cuisine. You use mangoes and other tropical fruits in many of your dishes. Since the competition in the restaurant industry is stiff, you’re always competing to stay in business.

I oppose import tariffs, and if possible they should be eliminated. Import tariffs increase the price of goods, both domestic and imported, increasing my production costs and reducing my income.

Even though import tariffs might help a small amount of local businesses, it hurts society as a whole. Customers have to pay higher prices for mangoes, or any type of product, that should be purchased at much lower prices. The economic loss resulting from import tariffs and negatively affecting consumers and other businesses offsets by far any economic benefit generated by them. If such actions are taken, the domestic mango industry will be unfairly treated just like the sugar industry and a few others that hurt the entire economy and benefit only a few.  

The government has the duty to do what is best for its citizens and businesses, and it cannot help a handful of businesses by hurting a very large group of other businesses and consumers. Government revenue will also decrease since steep tariffs will prevent any mangoes from being imported, reducing government revenue to zero.

4 0
3 years ago
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