Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On...
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Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30 , 2024 , the company transferred $810,000 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 $61,000. Required: Prepare the journal entry 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. Homework: Cash and Receivables Assignment (i) Journal entry worksheet \begin{tabular}{l|l} 3 \\ points \\ eBook & Record the transfer of accounts receivable on April 30. \end{tabular} Note: Enter debits before credits
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