Question: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.

Step by Step Solution

★★★★★

3.39 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

June 1 Cash 15400 385 15015 Lo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

524-B-A-C-R (3249).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Phillips Corporation, a construction company that specializes in home construction, uses special computer software to schedule jobs and keep track of job costs. It uses generic software for...

You have just been hired as a new management trainee by EarringsUnlimited, a distributor of earrings to various retail outletslocated in shopping malls across the country. In the past, thecompany h 2...

Calculate the gross profit. cash = 1,300,000 accounts receivable - 1,750 sales = 275,500 purchases = 18,000 merchandise inventory (31 Dec) = 19,275 accounts payable = 6,353 transportation-in = 2,300...

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $10,000 and a maturity value (principal plus interest) of $10,400. The...

WILL UPVOTE PLEASE ANSWER THE FOLLOWING ASAP!! Help me please with clear and detailed explanation of the answer Problem 9-14 (IAA) On April 1, 2022, Shalimar Company discounted with recourse a...

(7) Highway Company provides financing to other companies by purchasing their accounts receivable on a nonrecourse basis. Highway charges its clients a commission of 15% on all recevables factored in...

Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. A note payable was executed. The contract provided that PJTC would advance 85% of the gross amount of the receivables. The...

A- What is the difference between diffusion and osmosis? B- What is the difference between diffusion and active transport?

The following table shows data for the simple production function used in Question 1. Capital costs this firm $20 per unit, and labor costs $10 per worker. a. From the information in the table,...

Which of the following generally provides the least evidence regarding the valuation of the allowance for doubtul accounts? Maltiple Choice Alviewing an aging of accounts recelvable. Examination of...

What if the sadhu told the climbers that he wanted to die? Would you feel comfortable letting him?

Barb Company has provided information on intangible assets as follows: 1. A patent was purchased from Lou Company for $1,500,000 on January 1, 2018. Barb estimated the remaining useful life of the...

Munn Inc. had the following intangible account balance at December 31, 2018: Patent .........................$168,000 Information relating to Munns patent and transactions involving other intangible...

Lee Manufacturing Corporation was incorporated on January 3, 2018. The corporations financial statements for its first years operations were not examined by a CPA. You have been engaged to examine...

The following options have the same underlying stock that does not pay any dividends. The stock is currently trading at $20 per share. Rank the following options by price, starting with the highest...

I am most confused with the bonus than anything Philadelphia Fastener Corporation manufactures nails, screws, bolts, and other fasteners. Management is considering a proposal to acquire new...

Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here and the following information in its preparation. Sales: February $501,000;...