Sage Hill plans to factor accounts receivable totaling $60,000 at the end of the year. Sage Hill will transfer the accounts to Herzog Factors, Inc. with recourse. Herzog Factors will retain 3% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $2,500. Prepare the journal entry to record the sale of the receivables.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sage Hill plans to factor accounts receivable totaling $60,000 at the end of the year. Sage Hill will transfer the accounts to Herzog ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On December 31, 2018, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, excluding nonlease components, is $ 43,000. The interest rate for this lease is 12%.
Answers (1)
Assume that M is $200 billion and V is 6. If V increases by 15 percent, then, according to the monetarist equation, nominal GDP will have increased by: A. $140 billion B. $180 billion C. $220 billion D. $260 billion
Answers (1)
The lengthy process by which a job is examined in detail in order to identify the skills, knowledge and behaviors necessary to perform the job is known as a
Answers (1)
According to the price confusion problem, if the price of a product increases, then:a. prices as a whole fall, and the firm's output should increase. b. the price increase is due to inflation, and the firm's output should increase. c.
Answers (1)
When you need to limit your spending, you should start by reducing your variable expenses. False True
Answers (1)
New Questions in Business
The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 75,000 Cash 15,000 Salaries and wages expense 20,000 Rent expense 10,000 How much was Harold's net income?
Answers (1)
Nastasha has a gross income of $66,429. she can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. what is nastasha's adjusted gross income? a. $109,971 b. $22,887 c.
Answers (1)
Debra notes that theo chocolate has started holding its own operations to the same imo standards of fair trade to which it holds its suppliers. this type of sends a powerful message to employees and customers.
Answers (1)
Partners G and H form the GH partnership, with G contributing $200,000 cash and H contributing some land with a basis of $600,000 and a FMV of $900,000, subject to a nonrecourse liability of $700,000.
Answers (1)
Johnson, Inc. a builder enters into an agreement to construct a commercial building in a residential area in violation of zoning laws. Johnson hires a crew of construction workers to build the building.
Answers (1)