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MrRa [10]
3 years ago
12

ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% fa

ctoring fee. What entry should Jervis make to record the transaction?
Business
1 answer:
Nadusha1986 [10]3 years ago
3 0

Answer:

Debit Cash account      $71,250

Debit Factoring charge   $3,750

Credit Accounts receivable  $75,000

Explanation:

Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.

When receivables are factored,

Debit Cash account

Debit Factoring charge

Credit Accounts receivable

Charge on factoring =  5/100 × $75,000

= $3,750

Amount to be received = $75,000 - $3,750

= $71,250

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Natalka [10]
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8 0
3 years ago
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $236,300 an
Studentka2010 [4]

Answer:

Equipment, credit, $229,100

Explanation:

we record the entry when we purchase the equipment is

we debit the equipment, and credit the cash/accounts payable depending on whether we paid the cash or purchased the equipment on account.

We debit the equipment because equipment is our asset, and when asset goes up we debit them. We credit the cash because again cash is our asset and when asset goes down we credit them.

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5 0
3 years ago
A customer who lives in New York has an account with a broker-dealer and sales representative that are both registered in State
mash [69]
True because I said so and i don’t really care but I hope this helped
8 0
3 years ago
Which of the following is an example of a specific purpose? A. I want my employees to understand and follow the new dress code p
Alla [95]

Answer:

D. a and c

Explanation:

I hope it helps.

8 0
3 years ago
Shauna Lee Company expects the following for 2024​: • Net cash provided by operating activities of $140,000. • Net cash provided
Assoli18 [71]

Answer:

See below

Explanation:

Computation of Cash flow

Net cash provided by operating activities

$140,000

Less:

Net cash used for investing activities

($86,000)

Less:

Net cash provided by financing activities

(64,000)

Ending cash balance

($10,000)

Therefore, Lee would expect free cash flow of ($10,000) for 2024.

6 0
3 years ago
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