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Leona [35]
2 years ago
7

Pina Colada Furniture factors $670000 of receivables to Sheffield Factors, Inc. Sheffield Factors assesses a 2% service charge o

n the amount of receivables sold. Pina Colada Furniture factors its receivables regularly with Sheffield Factors. What journal entry does Pina Colada make when factoring these receivables
Business
1 answer:
Reika [66]2 years ago
3 0

Answer and Explanation:

The journal entry is shown below;

Cash $656,600

Factoring charges (2% of $670,000)  $13,400

            To Trade Receivables $670,000

(Being recording these receivables)

Here cash and factory charges is debited as it increased the assets and expense while the trade receivable is credited as decreased the assets

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No options are given, but the most commonly used survey response methods are:

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<em>The answer is 17.01 minutes</em>

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<em>Given that:</em>

<em>The learning rate (r) = 85% = 0.85</em>

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<em>By applying the learning curve formula</em>

<em>Thus,</em>

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