On June 30, Petrov Co. has $ 128,700 of accounts receivable. Prepare journal entries to record the

Question:

On June 30, Petrov Co. has $ 128,700 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.)

July 4 Sold $ 7,245 of merchandise ( that had cost $ 5,000) to customers on credit.

9 Sold $ 20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee.

17 Received $ 5,859 cash from customers in payment on their accounts.

27 Borrowed $ 10,000 cash from Main Bank, pledging $ 12,500 of accounts receivable as security for the loan.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...