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Furman Corporation entered into an assignment agreement with a finance company whereby Furman would be advanced 8 0 % of all accounts assigned, minus a
Furman Corporation entered into an assignment agreement with a finance company whereby Furman would be advanced of all accounts assigned, minus a $ service charge. The assignment does not meet the conditions for a sale and should be accounted for as a secured borrowing. During the year, $ of accounts receivable were assigned, $ collections were made on outstanding assigned accounts, and $ was remitted to the finance company. This remittance included interest charges of $ Sales returns and allowances on assigned accounts amounted to $
Required:
Prepare the journal entries necessary to record the preceding information.
Show how the preceding information would be reported on Furmans yearend balance sheet assume the note payable is shortterm
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