Question
1: On January 1, 2022, Sally's Corp. makes a sale and accepts the customer's $400,000 three year, 1% note in payment. A normal interest rate
1: On January 1, 2022, Sally's Corp. makes a sale and accepts the customer's $400,000 three year, 1% note in payment. A normal interest rate for this type of loan would be 8%.
How much interest revenue will Sally recognize in 2022?
2:
Zee Corp. factors $252,000 of accounts receivable on a without recourse basis. ABC Corp., the factor, withholds 12.0% of the gross amount financed as its service fee, and 2.6% to cover possible future adjustments.
Zee's journal entry to record this transaction will record a loss of?
3:
Sunset Corp.'s August 31 bank statement shows a balance of $188,000.
- Outstanding checks at August 31 total $13,000.
- Deposits in transit at August 31 total $3,500.
- Bank service charges in the August bank statement were $50.
What is Sunset's proper cash balance at August 31?
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