Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(5 points) On 8/1/2020, Braxtin Co. assigned $9,647,000 of its accounts receivable as collateral on a $5,800,000 loan. The bank assessed an upfront finance charge

image text in transcribed
(5 points) On 8/1/2020, Braxtin Co. assigned $9,647,000 of its accounts receivable as collateral on a $5,800,000 loan. The bank assessed an upfront finance charge of 1% and assigned the loan a 6% interest rate. Based on this information, what would Braxtin Co.'s entry to record the loan on 8/1/2020 include? (A9) Debit Cash for $9,550,530 Debit Interest Expense for $348,000 Credit Loss on Factoring for $96,470 Credit Notes Payable for $5,800,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater, Mike Deschamps

15th Edition

0137504284, 9780137504282

More Books

Students also viewed these Accounting questions

Question

Why would unions target health care workers?

Answered: 1 week ago