Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on

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Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on a with recourse basis.

Instructions

The recourse provision has a fair value of $1,000. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Ames Quartet Inc.

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Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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Question Posted: May 16, 2012 07:26 AM

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Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on

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Computation of net proceeds Cash received 160000 Less Recourse liability 1000 Net proceeds ...View the full answer

Intermediate Accounting principles and analysis

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