Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $920,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 85% of the factored amount and retains 15%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 2% fee (2% of the total factored amount). Samson estimates the fair value of the last 15% of its receivables to be $72,000. Required: Prepare the journal entry for Samson Wholesale Beverage for the transfer of accounts recelvable on April 30, assuming the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the transfer of accounts receivable on April 30. Note: Enter debits before credits. Event General Journal Debit Credit 1 Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $920,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 85% of the factored amount and retains 15%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 2% fee (2% of the total factored amount). Samson estimates the fair value of the last 15% of its receivables to be $72,000. Required: Prepare the journal entry for Samson Wholesale Beverage for the transfer of accounts recelvable on April 30, assuming the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the transfer of accounts receivable on April 30. Note: Enter debits before credits. Event General Journal Debit Credit 1
Expert Answer:
Answer rating: 100% (QA)
Prepare Journal entry to record the transfer of accounts re... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2018, the company transferred $800,000 of accounts receivable to Milpitas....
-
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $800,000 of accounts receivable to Milpitas....
-
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2011, the company transferred $800,000 of accounts receivable to Milpitas....
-
Explain (a) the ways to transfer title to personal property, (b) the three elements of a valid gift, and (c) the difference in the laws treatment of abandoned property, lost property, and mislaid...
-
A major North American city has four competing newspapers: the Globe and Mail (G&M), Post, Sun, and Star. To help design advertising campaigns, the advertising managers of the newspapers need to know...
-
In 2015, the money price of a dozen eggs in Canada was C$3.32 and the price of a kilo of carrots was C$2.22. Calculate the relative price of a kilo of carrots in terms of eggs.
-
Show that when two identical detectors in an intensity interferometer have read noise with the same variance \(\sigma_{\text {read }}^{2}\) and when the average intensities incident on the two...
-
Superior Products Co. produces a latex paint and uses the process cost system. Materials, labor, and overhead are added evenly throughout the process. The following information was obtained from the...
-
Discuss a fictitious company you create that offers a product or service of your choice. The following facts about the company provide the framework for this Your company is based in the United...
-
For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, jurisdiction) impacts after-tax value. Note that more than one variable...
-
Construct all non-isomorphic connected (6,6)-graphs. 1. Find all possible degree sequences of connected (6,6)-graphs. 2. Construct non-isomorphic connected (6,6)-graphs for each of the degree...
-
How does globalization influence labor markets and employment patterns, including the phenomenon of outsourcing, offshoring, and the rise of the gig economy, and what are the social consequences of...
-
How has the process of globalization reshaped the geopolitical landscape, and what are the key drivers behind the acceleration of global interconnectedness in the 21st century?
-
What are the social consequences of environmental degradation, climate change, and resource scarcity, particularly for marginalized communities and vulnerable populations disproportionately affected...
-
Sarafina and Donald have been married for 8 years and have 4 children together. However, their marriage started experiencing some matrimonial problems which resulted in her filing for a divorce....
-
The conflict of the play revolves around the question of which should be more important--our dedication to tradition and family or our dedication to the law and authority. On one end, we have...
-
10 < Question 4, Text Problem 4.2 Part 1 of 9 years The graph on the right represents the domestic supply and demand for coal a number of ago. Ask my instructor In the absence of trade, the...
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
The Brenly Paint Company, your client, manufactures paint. The company's president, Mr. Brenly, decided to open a retail store to sell paint as well as wallpaper and other items that would be...
-
In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction....
-
Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its...
-
In a perfectly contestable market, inefficiency does not exist. Explain why.
-
A perfectly competitive market is by definition perfectly contestable, but a perfectly contestable market is not necessarily a perfectly competitive market. Comment on this statement.
-
Why is it important to be clear about how costs can be classified to consider the degree of contestability of a market?
Study smarter with the SolutionInn App