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Receivable financing - Factoring 9. Mug Co. factored P400,000 accounts receivable with Coffee Financing Corp. Under the arrangement, Mug was to handle disputes concerning service, and Coffee Financing was to make the collections and handle the sales discounts. Coffee charged 6% service fee and retained 2% to cover sales discounts. Requirements: a. Prepare the journal entries in Mug's and Coffee's respective books to record the factoring assuming the factoring was

Receivable financing - Factoring 9. Mug Co. factored P400,000 accounts receivable with Coffee Financing Corp. Under the arrangement, Mug was to handle disputes concerning service, and Coffee Financing was to make the collections and handle the sales discounts. Coffee charged 6% service fee and retained 2% to cover sales discounts. Requirements: a. Prepare the journal entries in Mug's and Coffee's respective books to record the factoring assuming the factoring was

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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362 Chapter 6 Invent made on a non-recourse basis and, as to Mug, the transaction is only a one-time event. b. Prepare the journal entries in Mug's books assuming the factoring was made on a recourse basis and Mug uses factoring as a regular means of financing. The recourse provision has a fair value of P7,000. Rel Le Receivable financing - Discounting of Notes 10. On November 1, 20x1, Sunny Friday Co. discounted a 1. 2. P1,000,000, 6-month, 12%
Transcribed Image Text:362 Chapter 6 Invent made on a non-recourse basis and, as to Mug, the transaction is only a one-time event. b. Prepare the journal entries in Mug's books assuming the factoring was made on a recourse basis and Mug uses factoring as a regular means of financing. The recourse provision has a fair value of P7,000. Rel Le Receivable financing - Discounting of Notes 10. On November 1, 20x1, Sunny Friday Co. discounted a 1. 2. P1,000,000, 6-month, 12%
tmon basis and compute for Morning's "equity in the assigned receivable" at month-end, (Ignore the amortization of the "Discount on loan payable.") ole to Receivable financing - Factoring 9. Mug Co. factored P400,000 accounts receivable with Coffee Financing Corp. Under the arrangement, Mug was to handle disputes concerning service, and Coffee Financing was to make the collections and handle the sales discounts. Coffee charged 6% service fee and retained 2% to cover sales discounts. Requirements: a. Prepare the journal entries in Mug's and Coffee's respective books to record the factoring assuming the factoring was
Transcribed Image Text:tmon basis and compute for Morning's "equity in the assigned receivable" at month-end, (Ignore the amortization of the "Discount on loan payable.") ole to Receivable financing - Factoring 9. Mug Co. factored P400,000 accounts receivable with Coffee Financing Corp. Under the arrangement, Mug was to handle disputes concerning service, and Coffee Financing was to make the collections and handle the sales discounts. Coffee charged 6% service fee and retained 2% to cover sales discounts. Requirements: a. Prepare the journal entries in Mug's and Coffee's respective books to record the factoring assuming the factoring was
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