The following information is related to ABC Co.: 1. Accounts receivable of 60,000 (gross) are factored...
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The following information is related to ABC Co.: 1. Accounts receivable of €60,000 (gross) are factored with BFO Credit without guarantee at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. 2. Specific accounts receivable of €45,000 (gross) are pledged to ADORO Credit. as security for a loan of €30,000 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. Required: Prepare all necessary entries in general journal form for ABC Co. The following information is related to ABC Co.: 1. Accounts receivable of €60,000 (gross) are factored with BFO Credit without guarantee at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. 2. Specific accounts receivable of €45,000 (gross) are pledged to ADORO Credit. as security for a loan of €30,000 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. Required: Prepare all necessary entries in general journal form for ABC Co.
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General Journal Entries for ABC Co Transaction 1 Factoring Accounts Receivable with BFO Credit This ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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