A company transferred $61,000 of accounts receivable to a bank. The transfer was made with...
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Accounting
A company transferred $ of accounts receivable to a bank. The transfer was made with recourse. The company remits of the factored amount to the company and retains to cover sales returns and allowances. When the bank collects the receivables, it will remit to the company the retained amount which the company estimates has a fair value of $ The company anticipates a $ recourse obligation. The bank charges a fee of $ and requires that amount to be paid at the start of the factoring arrangement.
Required:
Prepare the journal entry to record the transfer on the books of the company assuming that the sale criteria are met.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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