FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Vaughn Corp. factors $440,000 of accounts receivable with Bramble Finance Corporation on a without recourse basis on July 1, 2025,
The receivables records are transferred to Bramble Finance, which will receive the collections. Bramble Finance assesses a finance
charge of 1.90% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales
discounts, returns, and allowances. The transaction is to be recorded as a sale.
(a)
Prepare the journal entry on July 1, 2025, for Vaughn Corp. to record the sale of receivables without recourse. (If no entry is
required, 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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
July 1
2025
Debit
Credit
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Transcribed Image Text:Vaughn Corp. factors $440,000 of accounts receivable with Bramble Finance Corporation on a without recourse basis on July 1, 2025, The receivables records are transferred to Bramble Finance, which will receive the collections. Bramble Finance assesses a finance charge of 1.90% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Prepare the journal entry on July 1, 2025, for Vaughn Corp. to record the sale of receivables without recourse. (If no entry is required, 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. List all debit entries before credit entries.) Date Account Titles and Explanation July 1 2025 Debit Credit
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