Question
On April 1, NYC Corporation secures a loan from a finance company, using its accounts receivable of $40,000 as collateral for the loan. NYC Corporation
On April 1, NYC Corporation secures a loan from a finance company, using its accounts receivable of $40,000 as collateral for the loan. NYC Corporation agrees to remit customer collections as payments on the loan. Loan proceeds are 80% of the receivables less a 2% finance charge on the balance of the assigned receivables. In addition, the finance company charges 10% interest on the unpaid loan balance, payable at the end of each month. Record the April 1 entry for NYC Corporation.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| April 1 | Answer
| ||
| Answer
| |||
| Answer
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The Curriculum Management Audit
Authors: Larry E. Frase, Fenwick W. English, William K. Poston
1st Edition
0810839318, 9780810839311
