Pearl Inc. factors receivables with a carrying amount of $242,700 to Joffrey Company for $178,900 on a with recourse basis. The recourse provision has a fair value of $3,390. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Pearl Inc. (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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pearl Inc. factors receivables with a carrying amount of $242,700 to Joffrey Company for $178,900 on a with recourse basis.

The recourse provision has a fair value of $3,390. This transaction should be recorded as a sale.

Prepare the appropriate journal entry to record this transaction on the books of Pearl Inc. (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.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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