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Additional Problem 11 Ayayai Financial Services has agreed to purchase $370,000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that
Additional Problem 11 Ayayai Financial Services has agreed to purchase $370,000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is $59,200. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20%. Calculate the net proceeds and the gain or loss on the disposal of receivables to Ayayai. Net proceeds on disposal of receivables $ Prepare Whispering Winds's journal entry to record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit
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