On November 30, Petrov Co. has $128,700 of accounts receivable and uses the perpetual inventory system. (1)
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On November 30, Petrov Co. has $128,700 of accounts receivable and uses the perpetual inventory system.
(1) Prepare journal entries to record the following transactions.
(2) Which transaction would most likely require a note to the financial statements?
Dec. 4 Sold $7,245 of merchandise (that had cost $5,000) to customers on credit, terms n/30.
9 Sold $20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee.
17 Received $5,859 cash from customers in payment on their accounts.
27 Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan.
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
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