Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. logitech corporation transferred $175,000 of accou

Logitech Corporation transferred $175,000 of accounts receivable to a local bank. The transfer was made...

90.2K

Verified Solution

Question

Accounting

Logitech Corporation transferred $175,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 90% of the factored amount to Logitech and retains the remaining 10%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 10% interest in the receivables of $15,500 (not including the 3% fee). What is the effect of this transaction on the companys assets, liabilities, and income before income taxes?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company...

Accounting
Q

1- Carbon dioxide is carried in the plasma, on hemoglobin, and as bicarbonate ions. What are the...

Medical Sciences
Q

To meet the tolerance required for a surveying project, it is necessary to use a total...

Civil Engineering
Q

The free oscillations of a mechanical system are observed to have a certain angular frequency ?1....

Physics
Q

a) Discuss George Wiedemann’s LaunchPad concept as it relates to NPD. (b) Write him a 1-2...

General Management
Q

Place the steps of binary fission in the correct order to test your understanding of...

Biology
Q

Refer to the financial statement (Form 10-K) for Apple dated 9/29/2018 and the financial statement...

Accounting
Q

A skeleton of Northen corporations, balance sheet appears as follows: Use the following...

Accounting
Q

Hagar and Maggie are divorced and have one child Maggie is the cut custodial parents...

Accounting
Q

3. Breakdown of a cartel agreement Consider a town in which only two residents, lake...

Accounting
Q

a 14 (1) 110 t. 1%0 - 110

Accounting
Q

Sun Energy Company has the following capital section in its balance sheet. Its stock is...

Finance