zoeyandblaze
30.10.2019 •
Business
Bramble corporation factors $252,500 of accounts receivable with kathleen battle financing, inc. on a with recourse basis. kathleen battle financing will collect the receivables. the receivables records are transferred to kathleen battle financing on august 15, 2020. kathleen battle financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.(b) assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. prepare the journal entry on august 15, 2020, for bramble to record the sale of receivables, assuming the recourse obligation has a fair value of $4,940. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)
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Ответ:
Explanation:
Before passing the journal entry we have to do the calculations which is shown below:
The accounts receivable is $252,500
Financial charge = 2% of accounts receivable = $252,500 × 2% = $5,050
Recourse obligation fair value = $4,940
The loss on receivables sold would be = $5,050 + $4,940 = $9,990
Reserve amount = 4% of accounts receivable = $252,500 × 2% = $10,100
Now the journal entry would be shown below:
Cash A/c Dr $237,350
Reserve A/c Dr $10,100
Loss on receivables sold A/c Dr $9,990
To Recourse liability $4,940
To Accounts receivable $252,500
(Being the sale of receivables with recourse is recorded)
Ответ:
A is a bit iffy, however B and C Both are the correct possibilities, and since A is also logical however not completely the case, D is the only answer that would allow it, the fact that all Are Possible for one reason or another