Question: Trell Corporation transferred $ 5 2 , 0 0 0 of accounts receivable to a local bank. The transfer was made without recourse. The local

Trell Corporation transferred $52,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 60% of the factored amount to Trell and retains the remaining 40%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 1% of the total amount factored. Trell estimates a fair value of its 15% interest in the receivables of $9,000(not including the 1% fee). Trell will show an amount receivable from factor of:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Question 8 (8 points) Sale of Receivables Kerl Manufacturing factored $175,000 of their accounts receivable to General Factor Corp on a without recourse basis. The receivables are transferred to...

Q:

On March 31, 2015, Second Time Around Clothing transferred $65,000 of accounts receivable to a local bank, Eric's Financial Corporation. The transfer was made without recourse. Eric's Financial...

Q:

On July 31, 2020, Antique Accents transferred $56,000 of accounts receivable to a local bank, Eric's Financial Corporation. The transfer was made without recourse. Eric's Financial Corporation remits...

Q:

On January 31, 2020, Biotech Company transferred $55,000 of accounts receivable to a local bank, Kevin's Financial Corporation. The transfer was made without recourse. Kevin's Financial Corporation...

Q:

Hepburn Company transferred $62,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Hepburn and retains the...

Q:

Saved Help Save & Exit The Hamada Company transferred $65,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to...

Q:

Hepburn Company transferred $61,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 60% of the factored amount to Hepburn and retains the...

Q:

32 The Hamada Company transferred $70,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 60% of the factored amount to Hamada and retains the...

Q:

ream Company transferred $64,000 of accounts receivable to the Prudential Bank. The transfer was made without Prudential remits 90% ofthe factored amount to Mountain High and retains 10%, when the...

Q:

Question 1 (15 points) On June 30, 2015, Cola Company transferred $62,000 of accounts receivable to a local bank, Kevin's Financial Corporation. The transfer was de recourse Kevin's Financial Corpora...

Q:

How networks can be made resilient to attacks so that the Internet does not become unsustainable in the face of increasing threats to privacy and security.

Q:

Discuss the advantages and disadvantages of Incident Response testing. When is each type of testing appropriate? Are there situations that preclude the use of a particular type of testing?

Q:

risk management in Multinational Capital Structure and management of cost of capital

Q:

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Q:

The best painkiller for children. A Washington Post article reported a study comparing the effectiveness of three common painkillers for children. Three hundred children, aged 6 to 17, were randomly...

Q:

Magic mushrooms. A Washington Post article reported that psilocybin, the active ingredient of magic mushrooms, promoted a mystical experience in two-thirds of people who took it for the first time,...

Q:

Beating sunburn with broccoli. Some recent studies suggest that compounds in broccoli may be helpful in combating the effects of overexposure to ultraviolet radiation. Based on these studies we hope...