Question
Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 4%, and 6% was retained to cover sales discounts,
Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 4%, and 6% was retained to cover sales discounts, sales returns, and sales allowances. Maxwell estimates the recourse obligation at $5,800.
Required:
Prepare Maxwells journal entry to record this factoring of its accounts receivable.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve
9th Edition
0324381921, 978-0324381924
