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kumpel [21]
4 years ago
9

On March 3, Sheridan Company sells $707, 700 of its receivables to National Factors Inc. National Factors Inc. assesses a servic

e charge of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 5% of the amount of receivables sold.
Prepare the entry on Sheridan Company books to record the sale of the receivables.

Business
1 answer:
jarptica [38.1K]4 years ago
6 0

Answer: The answer is given below

Explanation:

From the question, we are informed that on March 3, Sheridan Company sells $707, 700 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 5% of the amount of receivables sold.

The entry on Sheridan Company books to record the sale of the receivables has been prepared and attached. It should be noted that the service charge expense was calculated as:

= 5% × $707,700

= 0.05 × $707,700

= $35,385.

Other information has been attached.

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5 0
3 years ago
2. Sally Medavoy will invest $8,000 a year for 3 years in a fund that will earn 10% annual interest. If the first payment into t
ipn [44]

Answer: $10,746

Explanation:

Using Compound interest formula

A= p(1+r/n) *nt

A= final amount =?

P= initial principal =$8, 000

r = interest rate = 0.1

n= nob of times interest applied(3)

t=nob of times period elapsed (3)

A = 8,000 (1+0.1/3) *9

A = 8000 (3+0.1/3) *9

A= 8000 (3.1/3) *9

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A = 8000 × 1.34327

A= $10,746

5 0
3 years ago
Which category of cost includes insurance and utilities
Nata [24]

Answer:

Administrative Cost

Explanation:

Administrative cost refers to the cost used in directing and controlling a firm, corporation or organisation. These cost includes salary and wages of employee, insurance, depreciation, postage, stationery, rent, etc.

It is sometimes refers to as general cost. It is used in the day to day running of the business, but not directly attributable to any production process. These cost can not be categorized as either financing or distribution cost. Hence, it falls under administrative cost.

8 0
3 years ago
Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlem
Mashcka [7]

Answer: Composition

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The cash payment required of the company would therefore be:

= Amount of debt in $ - Amount to be paid per dollar.

= 150,000 * 0.5

= $75,000

Timing of payment is immediately.

A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.

The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.

A composition is what happened here as a part of debt was paid to satisfy the full thing.

5 0
3 years ago
In a guaranty​ situation, the​ _____ contract is between the person who agrees to pay the debt if the primary debtor does not an
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<span>In a guaranty​ situation, the​ guaranty contract is between the person who agrees to pay the debt if the primary debtor does not and the original creditor.

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8 0
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