Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bramble Corp. factors $3100000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 8%
Bramble Corp. factors $3100000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. Bramble estimates the fair value of the recourse liability at $320000. What would be the debit to Cash in the journal entry to record this transaction?
$2408000.
$3100000.
$2976000.
$2728000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started