Record each of the transactional entries for Superb Ice, a sales company using GAAP. Please write...

 

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Record each of the transactional entries for Superb Ice, a sales company using GAAP. Please write the journal entries on the lines below. You may round numbers to the nearest dollar. On April 19, the company factors $563,000 of accounts receivable with a factoring company on a without recourse basis. Assume that factoring company holds 4% of accounts receivable for probable adjustments, charges 3% of accounts receivable as a finance fee, and any recourse obligation has a fair value of $11,700. On May 7, the company loans one of their suppliers $58,396 in cash in exchange for the supplier signing a $60,000 long-term, interest-bearing note. Assume the note's stated interest rate is different than the implied market rate. Record each of the transactional entries for Superb Ice, a sales company using GAAP. Please write the journal entries on the lines below. You may round numbers to the nearest dollar. On April 19, the company factors $563,000 of accounts receivable with a factoring company on a without recourse basis. Assume that factoring company holds 4% of accounts receivable for probable adjustments, charges 3% of accounts receivable as a finance fee, and any recourse obligation has a fair value of $11,700. On May 7, the company loans one of their suppliers $58,396 in cash in exchange for the supplier signing a $60,000 long-term, interest-bearing note. Assume the note's stated interest rate is different than the implied market rate.

Answer rating: 100% (QA)

April 19 Accounts Receivable Original 563000 Loss on Facto... View the full answer