Beyonceacute corporation factors 175000 of accounts, Ask an Expert

Accounting

Beyoncé Corporation factors $175,000 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, 2014. 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 the transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse liability has a fair value of $2,000.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9881601
Price:- $15

Guranteed 24 Hours Delivery, In Price:- $15

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - x company wants to estimate overhead costs in

Question - X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. To determine the parameters of its overhead cost function, it used account analysis with the January cost inf ...

Question - if milo ltd sold inventory to lime ltd for 20000

Question - If Milo Ltd sold inventory to lime ltd for $20000 at a mark up of 25%. A quarter of the inventory was sold by 30 June 2016. The remainder was still sold by 30 June 2017. What is the equity accounting journal t ...

Question - primo industries collected 105000 from customers

Question - Primo Industries collected $105,000 from customers in 2015. Of the amount collected, $25,000 was for services performed in 2014. In addition, Primo performed services worth $40,000 in 2015, which will not be c ...

Question - ross company had the following inventory at the

Question - Ross Company had the following inventory at the end of the year: Quantity Unit Price Cost Market Valves: Model Q 180 $11 $9 Model R 150 10 12 Model S 120 7 9 Gaskets: Model Alpha 60 100 105 Model ...

Question - ismail construction enters into a contract to

Question - Ismail Construction enters into a contract to design and build a hospital. Ismail is responsible for the overall management of the project and identifies various goods and services to be provided, including en ...

Question - watch the video then discuss the differences

Question - Watch the video then discuss the differences between variable and absorption costing. How does variable costing help a company make good management decisions? List some examples of ways in which a business wou ...

Question - on december 31 2017 cheyenne company signed a

Question - On December 31, 2017, Cheyenne Company signed a $1,054,800 note to Ayayai Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in ...

Question - the community college instructor has asked for

Question - The community college instructor has asked for your help again. He or she wants you to personally create a document he or she could give to students. Write an 875 to 1,050-word paper in which you: Analyze the ...

Question using the readings about the differences between

Question: Using the readings about the differences between managers and leaders, and grounded in strategic planning, how can one take a leadership role in making yours a plan that works? The response must be typed, singl ...

Question - douglas bonds mature in 10 years and have an

Question - Douglas bonds mature in 10 years and have an annual coupon rate of 10.5 percent with semiannual payments. The $1,000 par value bond currently trades at $1,105 in the market. Compute the annual yield to maturit ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert