On October 1, 2008, Akira, Inc. assigns $1,000,000 of its accounts receivable to Alisia National Bank as
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On October 1, 2008, Akira, Inc. assigns $1,000,000 of its accounts receivable to Alisia National Bank as collateral for a $700,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Akira and Alisia.
Accounts ReceivableAccounts 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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Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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