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b. Walnut Creek Auto Supply sells (factors) $400,000 of Accounts Receivables with the Fast Freddie's Finance Company on a with recourse basis. Fast Freddie's Finance
b. Walnut Creek Auto Supply sells (factors) $400,000 of Accounts Receivables with the Fast Freddie's Finance Company on a with recourse basis. Fast Freddie's Finance acquires the receivables on March 31, 2020 assessing a finance charge of 38, and also reserving 4% for covering probable adjustments. The recourse obligation has a fair value of $9,000. Based on the contractual arrangement above, prepare the journal entry at March 31st for Walnut Creek Auto Supply. 1
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
