Now assume that on December Sunland enters into the following transactions related to the company's receivables:
Sunland sells the note receivable to Prairie Bank for $ cash plus accrued interest. Given the creditworthiness of Sunland's customer, the bank accepts the note without recourse and assesses a finance charge of Prairie Bank will collect the note directly from the custom
Sunland factors some accounts receivable at the end of the year. Accounts totalling $ are transferred to Splish Brothers, Inc, with recourse. Splish Brothers retains of the balances and assesses a finance charge of on the transfer. Splish Brothers will collect the receivables from Sunland's customers. The fair value of the recourse obligation is $
Prepare the journal entry to record the transfer of the note receivable to Prairie Bank. Round answers to decimal places, eg Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all debit entries before credit entries.
Account Titles and Explanation
Account Titles and Explanation
C
