Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oriole Company factors $3250000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 7%

Oriole Company factors $3250000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 7% of the accounts receivable for possible adjustments. Oriole estimates the fair value of the recourse liability at $330000. What would be the debit to Cash in the journal entry to record this transaction?

$2595000.

$2925000.

$3250000.

$3152500.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Information Systems Managing the Digital Firm

Authors: Kenneth C. Laudon, Jane P. Laudon

15th edition

134639715, 978-0134639710

More Books

Students also viewed these Accounting questions

Question

Did the researcher do a dependability audit?

Answered: 1 week ago