On December 1 of the current year, Jordan, Inc., assigns $125,000 of its accounts receivable to McLaughlin

Question:

On December 1 of the current year, Jordan, Inc., assigns $125,000 of its to McLaughlin Company for cash. McLaughlin Company charges a $750 service fee, advances 85% of Jordan’s and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan, Inc.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...