On February 1,2017, Jones Company factored receivables with a carrying amount of $500,000 to Smith...
60.1K
Verified Solution
Link Copied!
Question
Accounting
On February 1,2017, Jones Company factored receivables with a carrying amount of $500,000 to Smith Company. Smith Company assesses a finance charge of 5% of the receivables and retains 5% of the receivables. Assume that Jones factors the receivables on a without-recourse basis. Jones' journal entry to record the transfer would include a O debit to Loss on Sale of Receivables for $40,000 O credit to Cash for $460,000 O credit to Loss on Sale of Receivables for $15,000 O debit to Cash for $475,000 O credit to Accounts Receivable for $500,000
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!
