Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lincraft corp. reports a current ratio of 3-to-1 i

Lincraft Corp. reports a current ratio of 3-to-1 in its 20X2 financial statements. The statement...

70.2K

Verified Solution

Question

Accounting

Lincraft Corp. reports a current ratio of 3-to-1 in its 20X2 financial statements. The statement of financial position shows current assets of $3,122,500 and current liabilities of $1,046,100. Lincraft has accounts receivable of $1,275,300. The company transfers $978,000 of these accounts receivable to a financial institution. There are $34,000 of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts. Proceeds of $891,650 are received from the transfer. The transfer is on a non-notification basis, which means that the customers pay Lincraft and Lincraft then remit the cash to the financial institution. The customers pay $938,800 to Lincraft on schedule, $34,000 is written off to the allowance at the appropriate time, and the cash remittance is forwarded to the financial institution

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

GRADED PROBLEM SET #8 Answer each of the following questions completely. When possible to answer using a...

Basic Math
Q

Consider the following facts: Divisin A in a firm has generated $847,000 of profits on $24...

General Management
Q

11 1 3 1 2 of all CO2 is absorbed by the 12 We destroy...

Biology
Q

on an inclined plane forming an angle a with the horizontal fig and is imparted...

Physics
Q

6 List the volumes of the figures below from greatest to least 18 yd 14...

Geometry
Q

Let f be harmonic on a simply connected domain D in the plane and let...

Basic Math
Q

is this correct? urgent plz QS 1-9 (Algo) Determining effects of transactions...

Accounting
Q

Which of the following statements concerning extensions of time to file an individual tax return...

Accounting
Q

Question 50 of 82 View Policies Current Attempt in Progress In the liquidation of...

Accounting
Q

Chip has an accrual-method, calendar-year sole proprietorship. On January 1,2019, he created an accrual-method, calendar-year...

Accounting
Q

Four unrelated shareholders own Benton Corporation's 400 shares of outstanding stock. As indicated below, Benton...

Accounting
Q

C (Regular) Corporation Tax Return. FACTS Valerie Lawson and Clara Norman are the sole equal...

Accounting