Data Balance outstanding. Dec. 31 Estimated default rate Accounts written off during the year Collections on...

  

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Data Balance outstanding. Dec. 31 Estimated default rate Accounts written off during the year Collections on accounts written off Allowance for uncollectibles, Jan. 1 Days outstanding from invoice date 0-30 days 31-90 days > 90 days $ 7,700,000 0.5% Print Total $3,300,000 $ 600,000 $ 11,600,000 7% 8% Done S 10 65,000 2,000 327,500 Requirement d. Independent of the information above, suppose Eastwick factored $800,000 of receivables without recourse. In exchange, it received $730,000. Show the journal entry to record this transfer of receivables. (Record debits first, and then credits. Explanations are not required.) Credit Date Accounts Debit d. Requirement e. In requirement d, suppose Eastwick instead factored the $800,000 of receivables with recourse and received $750,000 cash. Both Eastwick and the factor anticipate that 2% of these receivables will prove to be uncollectible, so the factor has held this amount to cover any uncollectible accounts. Should the amount of uncollectibles prove to be more or less than 2%, the difference will be paid by/refunded to Eastwick Show the journal entry to record this transfer of receivables (Record debits first, and then credits. Explanations are not required.) Date Accounts Credit Debit Data Balance outstanding. Dec. 31 Estimated default rate Accounts written off during the year Collections on accounts written off Allowance for uncollectibles, Jan. 1 Days outstanding from invoice date 0-30 days 31-90 days > 90 days $ 7,700,000 0.5% Print Total $3,300,000 $ 600,000 $ 11,600,000 7% 8% Done S 10 65,000 2,000 327,500 Requirement d. Independent of the information above, suppose Eastwick factored $800,000 of receivables without recourse. In exchange, it received $730,000. Show the journal entry to record this transfer of receivables. (Record debits first, and then credits. Explanations are not required.) Credit Date Accounts Debit d. Requirement e. In requirement d, suppose Eastwick instead factored the $800,000 of receivables with recourse and received $750,000 cash. Both Eastwick and the factor anticipate that 2% of these receivables will prove to be uncollectible, so the factor has held this amount to cover any uncollectible accounts. Should the amount of uncollectibles prove to be more or less than 2%, the difference will be paid by/refunded to Eastwick Show the journal entry to record this transfer of receivables (Record debits first, and then credits. Explanations are not required.) Date Accounts Credit Debit