1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ss7ja [257]
3 years ago
5

Whispering Incorporated factored $164,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock

assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Whispering Incorporated and Metlock Factors to record the factoring of the accounts receivable to Metlock.
Business
1 answer:
GuDViN [60]3 years ago
5 0

Answer:

The journal entries are as follows:

In the books of  Whispering:

Cash A/c Dr. $151,708

Due from Metlock Ac Dr. $9,894

Loss on sale of receivable A/c Dr. $3,298

         To Accounts receivable                         $164,900

(To record factoring of accounts receivable on without recourse)

Working notes:

Due from Metlock = $164,900 × 6%

                               = $9,894

Loss on sale of receivable:

=  $164,900 × 2%

= $3,298

In the books of Metlock Factors:

Accounts receivable A/c Dr. $164,900

            To Due to Whispering             $9,894

            To Financing revenue             $3,298

            To Cash                                   $151,708

(To record the accounts receivable)

You might be interested in
Elc inc. is an electronic appliances manufacturer that has many strategic business units (sbus), among which, television and com
Sedbober [7]

Answer:

The answer is multi-divisional structure.

Explanation:

A company employing multi-divisional structure would usually function as a parent company that has many business units under it operating different business sectors. This is clearly the case of Elc Inc., since it both manufactures televisions and computers. The fact that both businesses share the same budget shows that the two business units are still operating in the same company.

4 0
3 years ago
Given the following financial statements for GM, the return on assets is ______ percent? (Write your answer as a percentage, rou
shutvik [7]

Answer: 2

Explanation: see attachment

8 0
3 years ago
In 2016, teller company sold 3,000 units at $600 each. variable expenses were $420 per unit, and fixed expenses were $270,000. t
Anit [1.1K]
Assuming that you have the values for the year 2017, the break-even point would be 1500 units for the year 2017. To calculate this, we use the idea that at the breaking point, total sales is equal to the total cost or expenses made. Which would be:

selling (x) = fixed + variable (x)

x = fixed / (selling - variable)
x = 270000 / (600-420)
x = 1500 units
6 0
3 years ago
As Vince described his firm's landscape maintenance program to the buyer for Allentown Medical Center, Alex (the buyer) interrup
sasho [114]

Answer:

Direct denial

Explanation:

In responding to obejections one can use various methods that suits the particular situation. A person can provide a logical argument when the objection is valid in a bid to convince the other party that their product is suitable for their needs.

In this instance Vince's firm has been in operation for over 15 years. The objection that start-up landscaping firms go in and out of business in just a few months can be answered with a direct denial.

Vince told them the business is not a startup but has been in business for 15 years.

8 0
2 years ago
Read 2 more answers
PLSSS HELP IF YOU TURLY KNOW THISS
sleet_krkn [62]
I believe it is C………
7 0
2 years ago
Other questions:
  • The Sherman Antitrust Act (1890)
    5·1 answer
  • Below are the transactions for Ute Sewing Shop for March, the first month of operations.
    11·1 answer
  • A shortage of a natural resource can lead to which phase in the business cycle?
    12·1 answer
  • What is market segmentation? Dividing people into common groups based on Zip Code. Grouping products into distinct categories ba
    9·1 answer
  • Test Pilot, Inc. reported a net operating loss of $25,000 for its tax year ended December 31, 2018. Test Pilot reported income o
    13·2 answers
  • Jack and Mary, a married couple, report taxable income of $280,000, which includes $200,000 from Jack's solely owned S corporati
    8·1 answer
  • partial credit, E12-19A (similar to) Turner Hardware is adding a new product line that will require an investment of $ 1 comma 5
    5·1 answer
  • Let's cost a job. Here is some data. What is the total cost on this job? Direct Materials $1,393 Direct Labor hours incurred to
    8·1 answer
  • Which statement best explains why reporters should use mostly primary sources?
    14·1 answer
  • Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!