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Current Attempt in Progress Presented below is information for Pronghorn Company. 1. Beginning-of-the-year Accounts Receivable balance was $19,200. 2. Net sales (all on account) for
Current Attempt in Progress Presented below is information for Pronghorn Company. 1. Beginning-of-the-year Accounts Receivable balance was $19,200. 2. Net sales (all on account) for the year were $107,700. Pronghorn does not offer cash discounts. 3. Collections on accounts receivable during the year were $90,800. Pronghorn is planning to factor some accounts receivable at the end of the year. Accounts totaling $10,300 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a nance charge of 5%. The fair value of the recourse obligation is $1,099. L Prepare the journal entry to record the sale of the receivables. (lf no entry is required. select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash 9167 | | Due from Factor 618 | l Loss on Sale of Receivables 1614 | l Recourse Liability | l 1099 Accounts Receivable | | 10300 X Your answer is incorrect. Compute Pronghorn's accounts receivable turnover for the year, assuming the receivables are sold. (Round answers to 2 decimal places, e.g. 4.57.) Accounts receivable turnover 3.99 times Days to collect accounts receivable 91.25 days eTextbook and Media List of Accounts
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