Question: Landstalker Enterprises sold 750 000 of accounts receivable to Leander Factors

Landstalker Enterprises sold $750,000 of accounts receivable to Leander Factors, Inc. on a without recourse basis under IFRS, as the risks and rewards have been transferred to Leander. The transaction meets the criteria for a sale, and no asset or liability components of the receivables are retained by Landstalker. Leander Factors assesses a finance charge of 4% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable.
Prepare journal entries for both Landstalker and Leander.

View Solution:

Sale on SolutionInn
  • CreatedSeptember 18, 2015
  • Files Included
Post your question