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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)
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 finance charge of 5%. The fair value of the recourse obligation is $1,099. Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Cash Due from Factor Loss on Sale of Receivables Recourse Liability Accounts Receivable Debit 9167 618 1614 Credit 1099 10300 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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Step: 1
To solve this we need to perform two tasks 1 Record the sale of the receivables in the journal entry ...Get Instant Access to Expert-Tailored Solutions
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