Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on
Question:
Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on a with recourse basis.
Instructions
The recourse provision has a fair value of $1,000. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Ames Quartet Inc.
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Computation of net proceeds Cash received 160000 Less Recourse liability 1000 Net proceeds ...View the full answer
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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