Refer to RE6 8 On December 31 Jordan Inc received 50 000
Refer to RE6-8. On December 31, Jordan Inc. received $50,000 on assigned accounts. Prepare Jordan’s journal entries to record the cash receipt and the payment to McLaughlin.
On December 1 of the current year, Jordan Inc. assigns $125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a $750 service fee, advances 85% of Jordan’s accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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