Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. samson wholesale beverage company regularly factor

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On...

80.2K

Verified Solution

Question

Accounting

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30,2024, the company transferred $940,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 5% fee (5% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $74,000.
Required:
Prepare the journal ehtry for Samson Wholesale Beverage for the transfer of accounts receivable on April 30, assuming the sale criteria are met.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
1
Record the transfer of accounts receivable on April 30.
Note: Enter debits before redits.
\table[[Event,General Journal,Debit,Credit],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
image

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

Score 3 0 O Macmillan Learning A study enrolled 517 children aged 2 to 5...

Statistics
Q

The figure is a section of a conducting rod of radius R1 = 1.20 mm and...

Physics
Q

2 2 2 Find the maximum and the minimum values of f x y z...

Calculus
Q

Instructions During the first month of operations ended May 31, Big Sky Creations Company produced...

Accounting
Q

pls help Communication Provide the term (using the word bank below) for...

Accounting
Q

The following budgeted production and sales information is for Flushing Company for the month of...

Accounting
Q

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

Accounting
Q

52. Comprehensive problem (tax return problem) Mr. and Mrs. Sam Morris retired on February 10,2021...

Accounting
Q

Question 17 Given the following data: Average operating assets Total liabilities Sales Contribution...

Accounting
Q

El____ para un punto de estado de cuenta dado se puede calcular utilizando el balance...

Accounting
Q

Gary Smith, president of Cullumber Always, agrees to construct a concrete cart path at Ivanhoe...

Accounting
Q

1. Why should predetermined overhead rates be used instead of actual rate? Justify your views...

Accounting