Amount of accounts receivable sold $ 450,000 Fair value of the estimated uncollectible accounts $ 21,100 Financing fee (as a percentage of accounts receivable balance) 9% 18% Tulip and Marathon both follow ASPE. Required: a) b) Prepare Marathon's journal entry for the purchase of the receivables. Marathon Financial Services has agreed to purchase Tulip Corporation's outstanding accounts receivable, on a with recourse basis. Following are details regarding this arrangement: Amount withheld for sales returns and allowance (as a percentage of accounts receivable balance).

Prepare Tulip's journal entry for the sale.

Answer rating: 100% (QA)

Tulip Accounts details and explanation Debit Credit Cash 34960000 Due from Fact... View the full answer