Using the information provided in BE 9 17, prepare the journal entry to record Nicks Incorporateds sale of accounts receivable to FF, assuming that the receivables are factored with recourse and can be reported as a sale The estimated recourse liability is $ 75,500 In BE 9 17 Nicks Incorporated sel...

With the recourse liability of 75500 the total loss on the ...

Using the information provided in BE 9- 17, prepare the journal entry to record Nicks Incorporateds sale

Question:

Using the information provided in BE 9- 17, prepare the journal entry to record Nicks Incorporated’s sale of to FF, assuming that the receivables are factored with recourse and can be reported as a sale. The estimated recourse liability is $ 75,500.
In BE 9- 17
Nicks Incorporated sells $ 2,450,000 of its to Fairfield Factors (FF) without recourse. FF charges a fee equal to 7% of the receivables factored and holds back an additional 4% as security. FF will return the hold back to Nicks when the receivables are collected. Assuming a sale, prepare the journal entry to record Nicks Incorporated’s sale of the to FF. 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...