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on may 1 carter, inc factored $800000 of accounts receivable with fax finance on without resources basis. fax remitted 90%

QUESTION 1 Part A: On May 1, Carter, Inc. factored $800,000 of accounts receivable with Fax Finance on a without recourse collects the receivables, it will remit to Carter, Inc. the retained amount less a 2% fee (2% of a total factor amo Required. Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credit May 1 Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with recourse Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Save All Answers Close Window Save and Subumi 12 points Save Answ inance on a without recourse basis. Fax Finance remitted 90% of the total factored accounts receivable to Carter, Inc. and retained 10% When Fax Fina 2% fee (2% of a total factor amount). Carter, Inc estimates that the fair value of the retained amount is 566,000. ecord the sale of receivables Amounts ebit Credit eceivable with recourse and estimated the recourse obligation to be $14,000 Td the sale of receivables Save All Answers Close Window SS 12 points the total factored accounts receivable to Carter, Inc. and retained 10% When air value of the retained amount is 566,000. QUESTION 1 Part A: On May 1. Carter, Inc. factored $800,000 of accounts receivable with Fax Finance on a without recours collects the receivables, it will remit to Carter, Inc. the retained amount less a 2% fee (2% of a total factor a Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credits May 1 Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with rea Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of rece Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with recourse Required. Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credit May 1 Part C: Required: Prepare journal entry for Max Company for: Max Company assigned accounts receivable in the amount of $500,000 to Rapid Finance Company as at Carter, Inc. factored the receivable with recourse and estimated the recourse obligation to be $14,000 er's books on May 1 to record the sale of receivables Amounts Debit Credit Part C: Required. Prepare journal entry for Max Company for Max Company assigned accounts receivable in the amount of $500,000 to Rapid Finance Company a rate on the note is 12%. Answer: Date Accounts Amounts Debit Crede pany as security (collateral) for a loan of $425,000 and signed a note. Rapid charged a 3% commission on the accounts rece unts Credit Part C: Required: Prepare journal entry for Max Company for: Max Company assigned accounts receivable in the amount of $500,000 to R rate on the note is 12%. Answer: Date Accounts QUESTION 1 Part A: On May 1, Carter, Inc. factored $800,000 of accounts receivable with Fax Finance on a without recourse collects the receivables, it will remit to Carter, Inc. the retained amount less a 2% fee (2% of a total factor amo Required. Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credit May 1 Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with recourse Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Save All Answers Close Window Save and Subumi 12 points Save Answ inance on a without recourse basis. Fax Finance remitted 90% of the total factored accounts receivable to Carter, Inc. and retained 10% When Fax Fina 2% fee (2% of a total factor amount). Carter, Inc estimates that the fair value of the retained amount is 566,000. ecord the sale of receivables Amounts ebit Credit eceivable with recourse and estimated the recourse obligation to be $14,000 Td the sale of receivables Save All Answers Close Window SS 12 points the total factored accounts receivable to Carter, Inc. and retained 10% When air value of the retained amount is 566,000. QUESTION 1 Part A: On May 1. Carter, Inc. factored $800,000 of accounts receivable with Fax Finance on a without recours collects the receivables, it will remit to Carter, Inc. the retained amount less a 2% fee (2% of a total factor a Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credits May 1 Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with rea Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of rece Part B: Assume the same facts as in Part A above, except that Carter, Inc. factored the receivable with recourse Required. Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credit May 1 Part C: Required: Prepare journal entry for Max Company for: Max Company assigned accounts receivable in the amount of $500,000 to Rapid Finance Company as at Carter, Inc. factored the receivable with recourse and estimated the recourse obligation to be $14,000 er's books on May 1 to record the sale of receivables Amounts Debit Credit Part C: Required. Prepare journal entry for Max Company for Max Company assigned accounts receivable in the amount of $500,000 to Rapid Finance Company a rate on the note is 12%. Answer: Date Accounts Amounts Debit Crede pany as security (collateral) for a loan of $425,000 and signed a note. Rapid charged a 3% commission on the accounts rece unts Credit Part C: Required: Prepare journal entry for Max Company for: Max Company assigned accounts receivable in the amount of $500,000 to R rate on the note is 12%. Answer: Date Accounts

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