Accounts receivable in the amount of $250,000 were assigned to the Fast Finance Company by Marsh, Inc. as security for a loan of $200 000 The finance company charged a 4% commission on the face amount of the loan, and the note bears interest at 9% per year. During the first month. Marsh collected $130,000 on assigned accounts This amount was remitted to the finance company along with one month's interest on the note. Make all the entries for Marsh Inc. associated with the transfer of the accounts receivable, the loan, and the remittance for the finance company Prepare journal entries for Mars Co. for (a) Accounts receivable in the amount of $500,000 were assigned to Utley Finance Co. by Mars as security for a loan of $425,000. Utley charged a 3% commission on the accounts. the interest rate on the note is 12%. (b) During the first month, Mars collected $200,000 on assigned accounts after deducting McGlone Corporation had a 1/1/10 balance in the Allow aide for accounts of $15,000. During 2010. it wrote off $10.800 of accounts and collected $3.150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. At 12/31/10. McGlone estimates that 5% of accounts receivable will to be uncollectible What should McGlone report as its Allowance for Doubtful at 12/31/10? a. $7, 200. b. $7, 350. c. $10, 350. d. $18,000 Accounts receivable in the amount of $250,000 were assigned to the Fast Finance Company by Marsh, Inc. as security for a loan of $200 000 The finance company charged a 4% commission on the face amount of the loan, and the note bears interest at 9% per year. During the first month. Marsh collected $130,000 on assigned accounts This amount was remitted to the finance company along with one month's interest on the note. Make all the entries for Marsh Inc. associated with the transfer of the accounts receivable, the loan, and the remittance for the finance company Prepare journal entries for Mars Co. for (a) Accounts receivable in the amount of $500,000 were assigned to Utley Finance Co. by Mars as security for a loan of $425,000. Utley charged a 3% commission on the accounts. the interest rate on the note is 12%. (b) During the first month, Mars collected $200,000 on assigned accounts after deducting McGlone Corporation had a 1/1/10 balance in the Allow aide for accounts of $15,000. During 2010. it wrote off $10.800 of accounts and collected $3.150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. At 12/31/10. McGlone estimates that 5% of accounts receivable will to be uncollectible What should McGlone report as its Allowance for Doubtful at 12/31/10? a. $7, 200. b. $7, 350. c. $10, 350. d. $18,000
