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Yuri [45]
3 years ago
12

Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudential Bank. The transfer was made without

recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%.
When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,400) less a 2% fee (2% of the total factored amount).Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
2 answers:
quester [9]3 years ago
7 0

Answer:

Would handle this 2moro

Explanation:

salantis [7]3 years ago
7 0

Answer:

Mountain high journal S

Date

1.Cash Dr 66,600

Receivable Cr 66,600

Narration. Amount received on factoring of S74000 receivable with Prudential bank less 10%.

2.Cash Dr 5920

Receivable Cr 5920

Narration. Additional amount received on factoring of S74000 receivable with prudent bank less 2% factor price.

3. Factor cost Dr 1480

Receivable Cr 1480

Narration. Balance written off receivable as factor cost to income account.

Explanation:

There will be no entry for the fair value of ,S6400 has the transaction has already been concluded and the value cannot increase or decrease though further discount or penalties can be applied to it.

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90000

Explanation:

its easy just subtract the answer from the amount made

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2 years ago
To be considered part of a market, an individual must
geniusboy [140]

Answer:

Have both willingness to buy and the financial resources needed to buy.

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Identify the type of social responsibility discussed in the case with regard to
lina2011 [118]

Corporate social responsibility (CSR) is the idea that a business has a responsibility to the society that exists around it, according to the online course Sustainable Business Strategy. Firms that embrace corporate social responsibility are typically organized in a manner that empowers them to be and act in a socially responsible way. It’s a form of self-regulation that can be expressed in initiatives or strategies, depending on an organization’s goals. Exactly what “socially responsible” means varies from organization to organization. Firms are often guided by a concept known as the triple bottom line, which dictates that a business should be committed to measuring its social and environmental impact, along with its profits. The adage “profit, people, planet” is often used to summarize the driving force behind the triple bottom line.

5 0
2 years ago
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

4 0
3 years ago
For a nail salon, the costs associated with the purchase of nail polish and other products like polish remover and disposable fl
ira [324]

Answer: Variable cost; should be considered

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Variable costs are the costs that varies with production. They are the opposite of fixed costs which are fixed. The nail polish and other products like polish remover and disposable flip flops are variable costs because the amount that'll be bought depends on the available customers and therefore isn't fixed.

6 0
3 years ago
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