362Chapter 6Inventmade on a non-recourse basis and, as to Mug, the transactionis only a one-time event.b. Prepare the journal entries in Mug's books assuming thefactoring was made on a recourse basis and Mug usesfactoring as a regular means of financing. The recourseprovision has a fair value of P7,000.RelLeReceivable financing - Discounting of Notes10. On November 1, 20x1, Sunny Friday Co. discounted a1.2.P1,000,000, 6-month, 12% tmon basis and compute for Morning's "equity inthe assigned receivable" at month-end, (Ignore the amortization of the"Discount on loan payable.")oletoReceivable financing - Factoring9. Mug Co. factored P400,000 accounts receivable with CoffeeFinancing Corp. Under the arrangement, Mug was to handledisputes concerning service, and Coffee Financing was tomake the collections and handle the sales discounts. Coffeecharged 6% service fee and retained 2% to cover salesdiscounts.Requirements:a. Prepare the journal entries in Mug's and Coffee's respectivebooks to record the factoring assuming the factoring was

Without recourse agreement Under Factoring without a recourse agreement is an agreement where the…

Answered: Receivable financing - Factoring 9. Mug…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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18. The following information pertains to Q Company: Trade accounts receivable, net of P10,000 credit balance in customers’ accounts, P350,000 Notes receivable, P30,000 due in 12 months, P210,000 Advances to officers, due in 2 years, P20,000 Advances to suppliers, P10,000 Sale price of unsold goods sent on consignment to Entity F (120% of cost), P24,000 Security deposit paid on a one-year lease contract, P6,000 Dividends receivable, P30,000 Determine the total current receivables. The correct answer is: 436,000
Current Attempt in Progress Skysong Corporation factors $252,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met fora transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Skysong to record the sale of receivables, assuming the recourse obligation has a fair value of $4,390. (If no entry is requlred, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit…
6. 131 3) Northern Industries accepted a credit card sale for $14,000. The credit card company charges 2%. a. What is the entry for this transaction on the horizontal equation? b. What is the impact of collecting the payment from the credit card company? (Show the individual accounts impacted in the asset section) Assets Liabilities Stockholders' Equity Revenues Expenses Net Income Cash %3D Flow a. b. 4) Here are the inventory purchases and sales for Fraser Company: Inventory Layers Available for Sale: October 1 Beginning Inventory 14 @ $16 $224 9. Study guide - Chapter 5 (with solutions).docx 19 f12 Oly prt sc 114
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Please help with the following question Q3: Shafer Company has the following accounts in its general ledger atJuly 31: Accounts Receivable $49,000 and Allowance for Doubtful Accounts $3,400. During August, the following transactions occurred. Aug.15Sold $30,000 of accounts receivable to More Factors, Inc. who assesses a 2% finance charge. 25Made sales of $2,500 on Visa credit cards. The credit card service charge is 3%. 28Made sales of $4,000 on Shafer credit cards. Instructions (a)Journalize the transactions. (b)Indicate the statement presentation of service charges. BR,
Use the following information for A-C On February 1, 2021, Blue Hour Company factored receivables with a a carrying amount of Php2,000,000 to Sweet Night Corporation. Blue Hour assess a finance charge of 3% of the receivables and retains 5% of the receivables. A. Determine the amount of loss on sale to be reported in the income statement of Blue Hour relative to this transaction for February. a. None b. Php60,000 c. Php100,000 d. Php160,000 B. Assume that Blue Hour factors the receivables on a recourse basis,. The recourse obligation has a fair value of Php30,000. The loss to be reported should be a. Php60,000 b. Php90,000 c. Php120,000 d. Php150,000 C. Assume that Blue Hour Company retained significant amount of risks and rewards of ownership on the factored financial asset, what amount of loss from factoring should the company recognize? a. None b. Php60,000 c. Php100,000 d. Php160,000
Hoffman Paper Company, a profitable distributor of stationery and office supplies, has an agreement with its banks that allows Hoffman to borrow money on a short-term basis to finance its inventories and accounts receivable. The agreement states that Hoffman must maintain a current ratio of 1.5 or higher and a debt ratio of 50 percent or lower. Cash 2$ 55,000 Current liabilities $ 210,000 Accounts receivable 150,000 Long-term debt 300,000 Inventory 255,000 Stockholders' equity 630,000 Fixed assets (net) 680,000 Total liabilities and stockholders' equity $1,140,000 Total assets $1,140,000 Given the balance sheet provided above, determine how much additional money Hoffman could borrow at this time to invest in inventory and accounts receivable without violating the terms of its borrowing agreement. Round your answer to the nearest dollar. $
Meg co factored P400,000 accounts receivable with Coffee Financing Corp . Under the arrangement, Meg was to handle disputes concerning service, and Coffee was to make the collections and handle the sales discounts. Coffee charged 2 pct to cover sales discounts. Prepare the journal entries in Meg and Coffee books to record the factoring assuming the factoring was made on a without recourse basis and as to Meg the transaction is only a one tine event.
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On October 31, 2021, Butter Company engaged in the following transactions: 1. Obtained a Php500,000, six month loan from Dope Bank, discounted at 12%. The company pledged Php500,000 of accounts receivable as security for the loan. 2. Factored Php1,000,000 of accounts receivable without recourse on a non notification basis with DNA Company. DNA charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. >What is the total amount of cash received from the financing of the receivables? >What is the amount of cash received from the pledged accounts receivables?
am. 134.
Subject : Accounting

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