Tidal Company has significant amounts of trade accounts receivable. In March of this year, Tidal assigned specific
Question:
Tidal also sold some special order merchandise and received a 90 day, 10%, interest bearing note receivable on July 1 of this year. After 30 days, the note receivable was sold with recourse at 14% at a bank.
Required:
1. Explain how Tidal should account for the transactions described here for the assignment of trade accounts receivable.
2. Explain how Tidal should determine the amount of the discount for the 90 day note receivable sold at the bank.
3. Explain how the sale of the 90-day note receivable should be accounted for. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Question Posted: