Business, 04.11.2019 22:31 salinasroel22

Factoring accounts rec.

on may 1, dexter, inc. factored $1,600,000 of accounts receivable with quick finance on a without recourse basis. under the arrangement, dexter was to handle disputes concerning service, and quick finance was to make the collections, handle the sales discounts, and absorb the credit losses. quick finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts.

instructions (a) prepare the journal entry required on dexter's books on may 1.

(b) prepare the journal entry required on quick finance’s books on may 1.

(c) assume dexter factors the $1,600,000 of accounts receivable with quick finance on a with recourse basis instead. the recourse provision has a fair value of $28,000. prepare the journal entry required on dexter’s books on may 1

(d) explain the main advantage and disadvantage of selling recievables (1) without recourse and (2) with recourse

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:00

Put each of them in order. you are a young entrepreneur with a startup business. you now seek credit from the bank to expand it. what are the steps you will have to take? 1. you support your loan application with relevant documents. 2. you fill out the loan application form at the bank 3. you get an approval for the loan and the money is disbursed to your business account 4. you use the credit to further your business plan. 5. you have an interview with the loan officer and you explain your business plan.

Answers: 1

Answer

Business, 22.06.2019 07:50

The questions of economics address which of the following ? check all that apply

Answers: 3

Answer

Business, 22.06.2019 15:00

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.

Answers: 3

Answer

Business, 22.06.2019 15:00

Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii

Answers: 2

Answer

You know the right answer?

Factoring accounts rec.

on may 1, dexter, inc. factored $1,600,000 of accounts receivabl...

Questions