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exis [7]
3 years ago
15

On February 1, 2020, Sheffield Corporation factored receivables with a carrying amount of $740000 to Ivanhoe Company. Ivanhoe Co

mpany assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheffield Corporation for February. Assume that Sheffield factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
Business
1 answer:
Mrac [35]3 years ago
3 0

Answer:

$33,100

Explanation:

Calculation to determine what The loss to be reported is

Using this formula

Loss=(Factored receivables*finance charge)+Fair value

Let plug in the formula

Loss=($740,000 × .04)+ $3,500

Loss= $29,600+$3,500

Loss=$33,100

Therefore The loss to be reported is $33,100

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3 years ago
Coronado Company sells merchandise on account for $4600 to Wildhorse Company with credit terms of 2/10, n/30. Wildhorse Company
telo118 [61]

Answer:

$3,528

Explanation:

The computation of the amount of the check after considering the discount period is shown below:

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hence, the amount of the check is $3,528

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3 years ago
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Answer:

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8 0
3 years ago
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