Question
Coronado Industries factors $3050000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 9%
Coronado Industries factors $3050000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Coronado 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?
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Management Accounting Principles And Applications
Authors: Hugh Coombs, D Ellis Jenkins, David Hobbs
1st Edition
1412908434, 978-1412908436
