Assume that instead of selling the receivables, Tiny Tiger Corporation uses the receivables as security to...
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Assume that instead of selling the receivables, Tiny Tiger Corporation uses the receivables as security to obtain a loan from Ferocious Lion Inc. Details regarding the transaction follow: Amount of the loan Finance fee charged on the loan amount by Ferocious Lion Interest rate charged on the loan From July 16, 2021 to August 15, 2021, Tiny Tiger Corporation collected the following amount of its outstanding accounts receivable Prepare journal entries for each of the following items for Tiny Tiger Corporation: (a) (b) (c) $ 413,398 3% 4% $ 180,861 Receipt of the loan proceeds on July 15, 2021. (1.5 marks) Collection of receivables from July 16, 2021 to August 15, 2021. (0.5 marks) Remittance of the collected receivables plus interest to Ferocious Lion Inc. on August 15, 2021. (3 marks) Assume that instead of selling the receivables, Tiny Tiger Corporation uses the receivables as security to obtain a loan from Ferocious Lion Inc. Details regarding the transaction follow: Amount of the loan Finance fee charged on the loan amount by Ferocious Lion Interest rate charged on the loan From July 16, 2021 to August 15, 2021, Tiny Tiger Corporation collected the following amount of its outstanding accounts receivable Prepare journal entries for each of the following items for Tiny Tiger Corporation: (a) (b) (c) $ 413,398 3% 4% $ 180,861 Receipt of the loan proceeds on July 15, 2021. (1.5 marks) Collection of receivables from July 16, 2021 to August 15, 2021. (0.5 marks) Remittance of the collected receivables plus interest to Ferocious Lion Inc. on August 15, 2021. (3 marks)
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a Receipt of the loan proceeds on July 15 2021 Cash 413398 Loan Payabl... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
Posted Date:
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