Softa Company borrows $ 850,000 from Deer Financing Associates by securing a revolving line of credit at
Question:
MonthAccounts Receivable Collected
April …………………………….$ 100,000
May …………………………….. 487,000
June …………………………….. 113,000
Required
a. Compute the balance of notes payable at the end of each month.
b. Prepare the necessary journal entries for these transactions.
c. If the accounts receivable had been pledged as collateral, what entry would be made at April 15? 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... Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Question Posted: