On January 1, $400,000 of specific accounts receivable of Macy's Inc. are assigned as collateral on a
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On January 1, $400,000 of specific accounts receivable of Macy's Inc. are assigned as collateral on a loan with Bank of America. Macy's Inc. and Bank of America both agreed to the following estimates: Sales discounts: $10,000, Sales returns $21,000, and Credit Loss: $19,000. The loan is due in 5 years and has an interest rate of 10%. The finance charge is 1%.
How would Macy's Inc. be affected?
How would the Bank of America be affected?
Expert Answer:
Macys Inc and Bank of America would be affected in the following ways Macys Inc 1 Reduction in accounts receivable By assigning 400000 of specific acc... View the full answer
Related Book For 
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
