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
Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets? a. the supply curve shifts leftb. the supply curve shifts rightc. the demand curve shifts leftd.
Answers (1)
Carl represents a marketing channel intermediary company and gets paid a commission for finding business buyers and linking them up with the manufacturers, negotiating, and facilitating the transactions.
Answers (1)
Rich Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value-added or non-value-added. Activities (a) Machine setup.
Answers (1)
Which of the following are recorded as credits, in the current account? A. Income received from foreign investments. B. Exports. C. Transfers received. D. All of the above. E. None of the above, since they are entered as debits.
Answers (1)
Which statement best describesthe main cause of the 2008 housing market crash
Answers (1)
New Questions in Business
Spencer Co. has a $350 petty cash fund. At the end of the first month the accumulated receipts represent $58 for delivery expenses, $187 for merchandise inventory, and $27 for miscellaneous expenses. The fund has a balance of $78.
Answers (2)
Pita Pal sells fast-food franchises. Pita Pal receives $83,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $83,000.
Answers (1)
The accounts receivable credit column of the cash receipts journal is A. posted by individual amounts only at the end of the month. B. not posted. C. posted in summary only at the end of the month. D.
Answers (1)
Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods. a.
Answers (1)
Thirty-two new employees from Market Enterprises are attending orientation, receiving information about company policies, and filling out various forms. These employees comprise a group. 1. True2. False
Answers (1)