7. Cinder Corp factored, with recourse, $150,000 of accounts receivable with Greedy Financing. The finance charge is 3%, and 5.5% was retained to cover sales discounts, sales returns, and sales allowances. Cinder estimates the recourse obligation at $1,750. What amount should Cinder report as a loss on sale of receivables?

8. Lakeland Inc. factors $950,000 of its accounts receivables with Greedy Finance on a without recourse basis for a finance charge of 4.5%. The finance company retains an amount equal to 5% of the accounts receivable for possible adjustments. Prepare the journal entry required on Lakelands books.

9. Given the above information, prepare the journal entry for Greedys books.

10. Lakeland Inc. factors $950,000 of its accounts receivables with Greedy Finance on a with recourse basis for a finance charge of 4.0%. The finance company retains an amount equal to 5% of the accounts receivable for possible adjustments. The fair value of the recourse liability is estimated at $25,000. Prepare the journal entry required on Lakelands books.

11. On July 4, Freedom sold $95,000 of inventory items on credit with the terms 2/10, net 30. Payment on $45,000 of the sales was received on July 10 and the remaining payment of $50,000 sales was received on July 30. Assuming Freedom uses the net method of accounting for sales discounts, record the entry on July 30.

12. On May 15, Brandle sold $52,000 of inventory items on credit with the terms 2/15, net 30. Payment on $30,000 of the sales was received on May 28 and the remaining payment was received on June 12. Assuming Brandle uses the gross method of accounting for sales discounts, what is the journal entry made on May 28?