FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Swifty Enterprises sold $789,000 of accounts receivable to Windsor Factors, Inc. on a with recourse basis under ASPE, as the risks and
rewards have been transferred to Windsor. The transaction meets the criteria for a sale, and no asset or liability components of the
receivables are retained by Swifty. Windsor Factors assesses a finance charge of 5% of the amount accounts receivable and retains
an amount equal to 6% of accounts receivable.
Prepare the journal entry for Swifty to record the sale, assuming that the recourse obligation has a fair value of $9,000. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Credit
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Transcribed Image Text:Swifty Enterprises sold $789,000 of accounts receivable to Windsor Factors, Inc. on a with recourse basis under ASPE, as the risks and rewards have been transferred to Windsor. The transaction meets the criteria for a sale, and no asset or liability components of the receivables are retained by Swifty. Windsor Factors assesses a finance charge of 5% of the amount accounts receivable and retains an amount equal to 6% of accounts receivable. Prepare the journal entry for Swifty to record the sale, assuming that the recourse obligation has a fair value of $9,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
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