On April 1, 2019, Prince Company assigns $500,000 of its accounts receivable to the Hibernia Bank as
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Instructions
a. Prepare the April 1, 2019, journal entry for Prince Company.
b. Prepare the journal entry for Prince's collection of $350,000 of the accounts receivable during the period from April 1, 2019, through June 30, 2019.
c. On July 1, 2019, Prince paid Hibernia all that was due from the loan it secured on April 1, 2019. Prepare the journal entry to record this payment.
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...
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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