Question
Inder corporation is experiencing a temporary cash storage and decides to transfer a group of its accounts receivable to Newton Company. Inder does not normally
Inder corporation is experiencing a temporary cash storage and decides to transfer a group of its accounts receivable to Newton Company. Inder does not normally transfer its receivables. Newton accepts $80,000 of Inder's accounts receivable, remits 90% of the accounts receivable transferred, and charges 16% commission on the gross amount of the transferred receivables. Title to the receivables is transferred to Newton, and Newton has the right to assign, pledge, or sell the receivables.
Journal entries necessary by Inder to record the preceding information assuming the transfer was without recourse.
Journal entries necessary by Inder to record the preceding information assuming the transfer was with recourse and the recourse obligation had an estimated fair value of $4,500.
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