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likoan [24]
3 years ago
14

When should a transfer of receivables be recorded as a sale? The buyer surrenders control of the receivables to the seller. The

transferor does not maintain effective control over the transferred assets through an agreement to repurchase or redeem them prior to their maturity. The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeem them prior to their maturity. The transferred assets are isolated from the transferor.
Business
1 answer:
miskamm [114]3 years ago
3 0

Answer:

The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

Explanation:

The code for transfer of receivable provisions, allows creditor of a debt to have the right to transfer his/ her receivable right to another person, provided that the transaction is permitted by the law/ contract nature of business. Transfer of receivables permit the third person/ party to be included in the relationship that exist between debtor and creditor, and this allows him/ her to near the title of creditor.The receivable must be an existing one before the receivable transfer can be possible. It should be noted that for transfer of receivables be recorded as a sale, The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

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EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance
Sidana [21]

Answer:

ECOSACKS

Production  Budget

Sales                               540,000

closing inventory(FG)   <u>  210,000</u>

                                        750,000

Opening Inventory(FG)  <u>( 120,000)</u>

Production                         <u>630,000</u>

<u />

<u>Materials Purchase budget </u>

                                          cotton                    canvas

                                              yards                   yards

Material usage                 <u>630,000</u>                  <u>126,000</u>

Material purchase cost    $2,520,000            $1,512,000

                                 <u>      Labor Budget </u>

labor hour(630,000*0.5)         <u> 315,000</u>

Labour cost (315,000*18)       <u>$5,670,000</u>

<u />

<u>                                        Overhead budget</u>

Production unit                                630,000

Overhead cost ( 630,000*$3.40)      <u>$2,142,000</u>

Explanation:

8 0
3 years ago
Read 2 more answers
dditional Information Accrued sales salaries amount to $2,400. Prepaid selling expenses of $2,100 have expired. A physical count
saul85 [17]

Answer:

A) Adjusting entries:

Dr Sales salaries expense 2,400

    Cr Sales salaries payable 2,400

Dr Selling expenses 2,100

    Cr Prepaid selling expenses 2,100

Dr Cost of goods sold 3,700

    Dr Merchandise inventory 3,700

B) prepare the closing entries

Dr Sales revenue 550,900 (net = $557,000 - $19,900 - $6,200)

    Cr Income summary 550,900

Dr Income summary 484,200

    Cr Cost of goods sold 239,700 (net = $236,000 + $3,700)

    Cr Sales salaries expense 62,400 (net = $60,000 + $2,400)

    Cr Selling expense 44,100 (net = $42,000 + $2,100)

    Cr Utilities expense 21,000

    Cr Administrative expense 117,000

Dr Income summary 66,700 (= $550,900 - $484,200)

    Cr Retained earnings 66,700

Dr Retained earnings 45,000

    Cr Dividends 45,000

   

7 0
3 years ago
According to a survey of American households: The probability that a household owns 2 cars, if annual income is over $25,000, is
vladimir1956 [14]

Answer: 0.48

Explanation:

P(A/B) = P(AnB)/P(B) where:

P(A/B) = The probability of event A occurring given that B has occurred.

P(AnB) = The probability of both events A and B occurring.

P(B) = the probability that event B occurs.

So let

P(A) = Probability that the residents of a household own 2 cars.

P(B) = Probability that the annual household income is greater than $25,000.

The question tells us that

P(A/B) = 0.8

Note that: P(A) = 0.7, P(B) = 0.6.

Since we want to work out P(AnB), because it gives the probability that residents have an annual household income over $25,000 and own 2 cars.

We would Rearrange our initial equation to make P(AnB) the subject formula becoming;

P(A/B) = P(AnB)/P(B)

P(B)*P(A/B) = P(AnB)

So, inserting our probabilities into this equation gives:

0.6*0.8 = 0.48

8 0
2 years ago
Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality. These
NISA [10]

Answer:  

Adverse selection

                         

Explanation:

Adverse selection typically refers to such a circumstance when sellers possess knowledge that customers just don't have, about some type of quality of products — in other terms, it is a method of leveraging asymmetric data.

In other words, Asymmetric information, often referred to as intelligence loss, occurs when any group has better knowledge of data than any of the other group.

Thus, we can conclude that the warranty is given to ensure customers that nothing has been hidden from them.

5 0
3 years ago
In an international transaction involving a bank as a third party, the exporter ships the product after:
nataly862011 [7]

Answer: the bank promises to pay on the importer’s behalf

Explanation:

8 0
2 years ago
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