Question
Please make journal entries for the following events: 16) Reigh had been looking at the accounts receivable account and was worried that this balance is
Please make journal entries for the following events:16) Reigh had been looking at the accounts receivable account and was worried that this balance is getting too high. She made multiple calls to the various customers that had purchased units as far back as May, wanting to ask if they were going to pay their accounts anytime soon. She was concerned with the number of customers who didnt return her call or didnt answer at all. After discussion with Ella, Reigh decided to call a receivable factoring company to see if they wanted to purchase their receivables from the miscellaneous customers only, not the corporate accounts or apartment manager accounts. Reigh called Webreakem Inc. and they happily agreed to buy the miscellaneous receivables of REI for a fee of 3% of the total amount outstanding. On December 12th, REI sold their miscellaneous receivables to Webreakem Inc. at this 3% cost. 17) On December 22nd, REI received payment in full from Saskatoon Co-op. This sale was made during November (transaction/event #11 quarter 4). 18) On December 26th, REI received payment in full from Princeton Inc. This sale was made during November (transaction/event #11 quarter 4). 19) On December 29th REI received and paid $420 for the telephone bill for the month of December. 20) On December 29th REI received and paid $550 for the utility bill for month of December. 21) On December 29th, REI did a physical count of their office supplies. The count indicated they had $480 of office supplies on-hand. 22) Reigh decided to look closely at the remaining accounts receivables as at December 29th to determine an accurate assessment of the collectibility of the accounts. She decided to apply the same aging analysis and rates as last quarter. 23) On December 29th, REI paid another payment on the installment note.
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