Marigold Corp. factors $ 390,000 of accounts receivable with Swifty Finance Corporation on a without...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Marigold Corp. factors $ 390,000 of accounts receivable with Swifty Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Swifty Finance, which will receive the collections. Swifty Finance assesses a finance charge of 1.80% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.
Prepare the journal entry on July 1, 2020, for Marigold Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1, 2020
eTextbook and Media
List of Accounts
Prepare the journal entry on July 1, 2020, for Swifty Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1, 2020
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!